Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Unfortunately, it happens all the time and yes they can accept a lower offer.
When a property is owned by a bank or someone like Fannie Mae, they want to get rid of the property as quickly as possible. If your offer had several contingencies (3rd party financing, inspections, option period, etc) and the other contract had already eliminated those contingencies, they may take the other offer because it is more of a "sure bet" to get to closing.
When dealing with REOs, Foreclosures, Short Sales, etc, it is best to have as few contingencies as possible in order to be a strong offer.
I'm sorry this happened to you, but it is permissible. As far as not disclosing these items, they SHOULD have especially if those liens and fines transferred with the title of the home.
Because it's more than real estate. It's RAYL-Estate!
Brian Rayl, REALTORÂ®, e-PRO, SFR
Keller Williams Elite - Dallas Park Cities
It sounds like there were multiple issues with this purchase. Sorry to hear you were not successful. This happens often. Take a look at the addendum's you filled out they most likely state something like the seller can accept or reject any offer and is not obligated to accept any offer. Also getting a home inspection done in advance puts you in an advantage as to knowledge about the home. The only problem is if you don't get the home you are out the money you spent on the home inspection.
Don't let this get you down. Go find another home soon and make an offer. I wish you all the best.