Foreclosure in Minnetonka>Question Details

Kurett1, Home Buyer in Minnetonka, MN

When does a bank stop accepting offers on a house they own?

Asked by Kurett1, Minnetonka, MN Wed Jul 1, 2009

We are looking at a house in foreclosure that has been on the market for a week. From what we understand the bank has possibly accepted an offer contigent on an inspection. The inspection has not happened yet. We are going to see the house on Friday and wondering, if we like it ,can we make an offer as well?? I do know the offer was made for less than the asking.

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First of all, it is not up to the agent to stop offers from coming in. They must present all valid offers to the seller, including back-up offers, unless instructed by the client in writing that they do not want to entertain any more offers. If the agent says 'no', have them send your agent a written statement from the seller that they will not entertain any offers. It's surprising how many agents are not aware of this.
0 votes Thank Flag Link Sat Jul 25, 2009
You say "bank has possibly accepted an offer". Did they or not?

If they did, the parties have a contract. Any additional offers would be backup offers in case the inspection contingency was used and the buyers cancel the contract.

Sellers (bank or homeowers) should always look at backup offers. Before you go out to house, be sure that they will accept your backup offer.
0 votes Thank Flag Link Thu Jul 2, 2009
Once a house is sold subject to an inspection, they are very close to making the deal permanent. There is a small possibility that the deal will not go through after the inspection. You have a chance of having your offer entertained, but only after the inspection is done and only if the current offer falls apart as a result of the inspection. If that does happen, I would have your agent ask the listing agent why the current buyers backed out. It may be an important material fact about the house you would want to know.
0 votes Thank Flag Link Thu Jul 2, 2009
If the house is bank owned then typically the listing agent y will stop accepting offers once the bank makes a counter offer on one of them. If the house is in foreclosure and is subject to a short sale then the listing agent may look at offers until the bank accepts the offer which can be a long time. Under normal circumstances, if the listing agent has accepted an offer subject to inspection, it would most likely close and you're out of luck as far as that house is concerned. Dealing with bank mediated tranasctions in today's market, however, it seems that anything can happen. I would recommend that if you find that you like the house and really want it, to write a back up offer so in the event the other offer falls through you can be next in line. There are a number of ways to give yourself an advantage in multiple offer situations, however out bidding the accepted offer isn't one of them. Hopefully your agent has experience with this type of transaction since often times it's more complex than a traditional transaction.

Good Luck.
0 votes Thank Flag Link Wed Jul 1, 2009
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