Foreclosure in 43610>Question Details

Aaron Meinke, Home Buyer in 43412

Is there any chance my backup offer will be accepted?

Asked by Aaron Meinke, 43412 Fri Feb 5, 2010

I recently made an offer on a house that I really liked - a historical, bank-owned home. I looked at the house and while we were looking at it we were told that there was another offer that was nearly accepted so I offered 6 thousand above asking price with an FHA loan and this offer got in in time to be considered. I thought about it all night and the first thing the next morning I changed my offer to a Cash "As Is" offer, still 6 thousand over asking price. I was told at that time that the other parties offer had been accepted and my new cash offer would be submitted as a backup offer. I am fairly certain that my offer is much higher than the other parties; is there any chance or should I just give up and move on?

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14
can you put aback up offer on a foreclose house
0 votes Thank Flag Link Tue May 26, 2015
Aaron:

If you are serious about the house, definitely put in your backup offer. You can always withdraw it if you find another home. Contracts do fall apart due to inspections or financing not coming through. If that happens, you can be there to pick up the pieces. We are speculating about this other buyer and their offer. They may have been paying cash, they may have been closing sooner. There are a variety of reasons they may have taken that offer over yours. With the home being a historical home, the seller may not have thought that it would pass FHA inspection. Did you ask your agent why they accepted the other offer over yours? They may disclose the reason to you.

As for hiring a real estate attorney, I am not sure what you are hoping to accomplish. The bank is in a legal binding contract with a buyer, so it doesnt matter if you offer more at this point, they are stuck unless the buyer backs out due to inspection or cannot obtain financing approval.

As a side note, beware when looking at REO properties. A strategy is to list the homes WAY below market at an absolutely unbelievable price to get multiple offers that end up being far above list price. I had a client bid $16,000 over list price a few weeks ago and still did not get the house. There were 4 offers and even at 16K over, the house was still $20,000 below market. Make sure you do your homework on recent sales in the immediate area before making your offer and go in with your best foot forward.

Good luck!
0 votes Thank Flag Link Thu Feb 11, 2010
Aaron it sounds like the bank was presented with all offers. After you slept on it it you decided to change your offer. The owner of the property may have had a deadline like 4pm of the offer date. They made their decision based on the offers that were presented at that time.
As for an attorney what are they going to do? Cost you a lot of money to tell you that the other offer was accepted before you decided to change yours!
In the future when you go in a multiple offer situation offer your "no regrets" price and terms. That way if you get it your fine, if you don't you can always say that you would not go any higher.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Mon Feb 8, 2010
Should I have a real estate lawyer look into the situation, even if there's no chance? I would just like to know why the bank wouldn't have held off just a little longer before fully accepting the other offer if they were aware that better offers were coming in; it makes me think that my offer may not have even been considered or seen by the bank while there was still that narrow window just before the other offer was accepted. It seems to me that before one offer is completely accepted in writing that the bank should be presented with all offer that are coming in.
0 votes Thank Flag Link Sun Feb 7, 2010
Aaron: Keep asking and letting the listing agent know through your agent that you are still very interested. If it has been a long time then re-submit your offer. If you really want the house make it a little higher. If you are not constantly making it clear that you are still want the home and a lot of time goes by then the listing agent may not know you will still be interested.

Good Luck to you and I hope you get it if the original offer rescinds!
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Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Sat Feb 6, 2010
Hi Aaron,
I suggest you continue to look at other homes, as a back up offer is all it is " a back up offer" also, if another back up offer comes in and it is better than yours the agent will submit that offer rather than yours.
There is over 18 months of inventory of homes for sale in the NW Ohio area. You really need to be represented by an agent that is looking out for your best interests. There are some great deals out there, and bankowned properties are sold "as is" no repairs no warranties" If you like the west end area, I would recommend finding a Realtor who specializes in historical homes and would be able to provide you with all the information: trends, great deals, neighborhood information. Please email me direct and I will provide with I believe is the "Expert" in Historical homes.
Email: cindy@cindykeil.com I wish you the best in your search for a home.
Sincerely,
Cindy Keil Realtor, CDPE, FIS, SFR
0 votes Thank Flag Link Sat Feb 6, 2010
Aaron, Others have given you good advice but I would like to add, make sure you know the value before offering above asking price and if it is a cash offer. When you get financing, an appraisal is done because lender requires it. You should order an appraisal yourself if it is cash offer and make it subject to appraisal. Get a good real estate attorney if you are not familiar with the home buying process. A good buyers agent can do the comps for you. If you are a first time buyer you do not want to waste time waiting for this offer to be accepted and find out you have missed the deadline for tax credit.
My advice to buyers is to interview three agents and ask your friends for referral to an agent.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Feb 6, 2010
I would move on. A back up offer is just that, if something goes wrong, you are there for the seller to back up the first offer. This does little for you and a lot for the bank. It create incentive for the first offer to do what ever they can to close and gives the bank to leverage to push the first offer.

Next time you make an offer make sure it is the best offer to ensure you get the deal.

Good Luck

Keith Manson
First Weber Group
Certified Distressed Property Expert

http://milwaukeebailout.com
0 votes Thank Flag Link Sat Feb 6, 2010
Aaron sounds like you are looking in the old west end. There are some great homes there. Your hope of having your backup offer accepted depends on the first offer falling through. If you like the home keep your offer in a backup possition if the lender seller will allow it. Sometimes the people with the first accepted offer have problems which meens you get lucky.
I would keep looking just the same and if you find something else you can resind your backup.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sat Feb 6, 2010
I would keep moving on , don't wait.

You can close faster than a lender loan however it does not always boil down to money determine who has winning offer.

Lynn911
0 votes Thank Flag Link Fri Feb 5, 2010
Aaron
There is a chance. Keep looking but don't give up. My buyers in backup have been the one moving in so it is not a lost cause but move forward. Have you agent contact the listing agent at least once a week to let them know you are still there and want it.
Was you offer within the comps, your Realtor should be able to tell you. If the current buyer is financing does it run the risk of not appraisng? If it does, that increases your odds. Financing falls apart more often than you think.

Good Luck!
0 votes Thank Flag Link Fri Feb 5, 2010
I'm a first-time home buyer and it's a lot more stressful than I imagined :) I realize now that in a situation like the one I was in with multiple offers "cash is king" even if an offer with a loan is higher. I should have offered cash in the first place, but as they say, hindsight is 20/20. My "realtor" (a number I picked off a sign from another property) didn't seem very ambitious to get my revised cash offer in as soon as he possibly could. He told me that the listing agent was the only one that could present the offer to the bank and that he had taken a "vacation" that day so actually my cash offer didnt get in as a back up offer until the next day. While I was frantically rushing around at 9am to transfer funds and get the proof sent over to him as soon as possible (a waste of energy because it didnt end up getting put in until the listing agent got back from his one day "vacation"). I think something strange may have been going on but I'm too inexperienced with this type of thing to do anything about it or to have spotted it as it was happening. I was just agreeing with everything they were telling me.
0 votes Thank Flag Link Fri Feb 5, 2010
Aaron,

There is always a chance that an offer will fall through before closing. My suggestion would be to check with your agent, if you have one, or with the listing agent regarding what is going on with the other offer. Check on time lines regarding any inspections and closing dates and if there seem to be any delays for any reason. Also, the listing agent might be able to give you an idea of whether or not he/she thinks the deal has a good likelihood of going through or not; sometimes an agent (especially one that does a lot of bank owned sales) may have some insight based on previous experiences with similar types of offers. Remember, the listing agent does not have to share any information with you regarding another offer, but many will so that you don't withdraw your backup offer in case something does happen.

That being said, you can go ahead and leave the backup offer intact and still pursue other properties. If you find another suitable property, just withdraw your backup offer. If you don't find anything, your offer is still the first in line in case something does fall through.

Good luck to you!
Web Reference: http://www.ChadBoyers.com
0 votes Thank Flag Link Fri Feb 5, 2010
Good question--however, your guess is as good as everyone else's--what is your agent advising, he/she is your best source of information--foreclosures do take some time- -keep in mind since you are not in contract, you are free to keep looking--the decision entirely yours.
0 votes Thank Flag Link Fri Feb 5, 2010
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