Foreclosures - they are difficult beasts to deal with. I handle many foreclosure listings and here is the trouble we face everytime we deal with a foreclosure. Some foreclosure companies have computer software packages we are required to use to submit an offer. In this circumstance, we can't even send in the contract; only can enter the info in this system. If they approve it, then they have us upload the actual contract and eventually - some 2 to 3 weeks later, they send us back the signed contract. The probelm here is that during that 2 - 3 weeks if another offer comes in, the listing agent is required to submit it. We call and call, email after email, and get very little or even no response. They will call/email us when they are good and ready. If the offer is better, some of these REO companies will take the higher offer even though they have stated they will accept a lower offer. The agent can do nothing about speeding up the process in getting back the signed counter. Then we have REO companies that we actually email the contract to and if they accept it, they sign it and send it back in 2-3 days. One particuar company I deal with stands by their word and takes the offer that they originally negotiated; other REO companies..not always so. If you think foreclosures are bad, try dealing with a short sale. I know people who have waited over 5 months. Many buyers think foreclosures are good deals but that is not always the case.

Joe -
It's unfortunate this happened (especially since you made a full price offer) but as Yogi Berra said "it ain't over 'til it's over". In all real estate transactions the written offer and acceptance will trump anything verbal. That's why it's so important to you a qualified and knowledgeable agent in all transactions. They know what needs to be signed and dated and where to sent it - that said, sometimes that still isn't enough. There is additional paperwork to be done in bank owned transactions and your agent probably did a great job. You can sign all the usual paperwork and still be waiting for the bank paperwork to make it all complete. They work at their own pace and there have been situations where I have begged for the appropriate forms from a bank just so this situation would not happen to my clients. My husband works for a bank and they are so overwhelmed with all the foreclosures and short sales that they're working as fast as they can but sometimes just can't churn it out to please buyers and their agents. Wish you luck and that you are able to find another property in the near future and keep working with your realtor - he/she I'm sure is really trying to make that sale happen.
Trisha Lee REMAX Boone Realty, Columbia, MO
573-999-1000 TrishaLee@Remax.net

Joe,

Unfortunately, until you have it is writing, this is a real possibility with today's dealings. Fair and just, ethical, responsible decision making on the part of some lenders is in serious shortage.

A reminder of what happens when you throw billions at solving a problem with little accountability.

Yes, until both buyer and seller have fully executed a purchase contract, Seller can accept another offer. When purchasing a bank-owned property, the buyer is required to sign the bank's purchase contract addendum. Sounds like you were given a verbal acceptance, but had not yet signed the bank's addendum.