Foreclosure in 33405>Question Details

Trudel Louis, Home Buyer in Montreal, MO

Is it correct for the seller (fannie mae) to accept an offer lower than yours? Is it correct to give you the addenda after the offer accepted?

Asked by Trudel Louis, Montreal, MO Mon Mar 21, 2011

I made an offer equal to the listing price, there was suposingly an higher offer, but he backed-up the day after he supposingly discovered bad things about this house, they asked me if I wanted to increased my offer, so I offered 5K more, and then the day after my las offer the listing agent REO Corp. told me that they considered and accepted the other bidder whose for offered less, saying that he had already inspection done and stuff like and that will be be easier that way. So my question is, is the listing agent correct if he sell for less cause it would be easier for them to deal with the bidder that has only done the inspection already. I don't understand why he did inspection before having his offer accepted. Note, it is a fannie mae listing. Last question, they knew about the liens and fines from the city, but they did'nt say anything about that, also there was a missing addenda in the offer package that they may be give you if you win the race. Louis Trudel

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Christopher Pagli’s answer
Hi, the offer that was lower may have had better terms or ginancials according to the banks standards. yes it is normal for the addendum to come with the contract, you are usually given a certain amount of time to perform or walk if you want.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
0 votes Thank Flag Link Tue Mar 22, 2011
Sellers can accept any offer they want. it isn't always about the bottom line!
0 votes Thank Flag Link Tue Mar 22, 2011

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, REALTOR®, e-PRO, SFR
Keller Williams Elite - Dallas Park Cities
Web Reference:
0 votes Thank Flag Link Mon Mar 21, 2011
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.

Gary Geer
0 votes Thank Flag Link Mon Mar 21, 2011
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