General Area in Atlanta>Question Details

Nikki, Home Buyer in Atlanta, GA

A bank accepted out offer. We signed the papers and sent it to them. The next day they said the house was sold at an auction. Why would this happen?

Asked by Nikki, Atlanta, GA Wed Apr 25, 2012

Help the community by answering this question:

Answers

13
Because the banks are lying sacks. The levels of nonsense associated with lenders handling distressed inventory is mind boggling. It's possible one department accepted it not knowing it had been auctioned.

I could say this is rare but it's not. Read this:

http://hounddogrealestate.com/2012/03/19/it-is-really-all-ab…


Hank
1 vote Thank Flag Link Wed Apr 25, 2012
I have seen this more and more these days.
0 votes Thank Flag Link Wed May 2, 2012
G D Stanford has the best answer...Because they are a bank! The right hand doens't know what the left hand is doing. I have lost a sale because of a very similar situation. Tread with caution when dealing with forclosures.

If you really want to hear a scary story, google the bank sold the house I just bought last week. Banks selling a house twice just because no one knows what is going on.
0 votes Thank Flag Link Wed May 2, 2012
Because they are a bank!

Most of the time, I have observed that one person at Big Bank.com has no idea what the other person, in the same department, is doing! Unfortunate but true...
0 votes Thank Flag Link Wed Apr 25, 2012
There's no good reason why this should happen. First off let me say the banks don't care one bit! Whatever serves their best needs - that's the bottom line. Could this have been prevented? Maybe. But bottom line, until you are leaving the closing table, anything is possible. Personally, I wouldn't waste a dime on hiring an attorney. Go find another house that suits your needs. I know it's out there!
Bob
0 votes Thank Flag Link Wed Apr 25, 2012
That is very sad.
Yes, the banks are clueless - one department is doing loan modifications and short sales, and the other one foreclosures.
Because this is in GA, you might still do something about it - with the help of the seller, if seller is interested in helping you and himself.
You got to see an attorney re. this situation - uniting your actions with the seller.
Keep all your paperwork available for attorneys review.

However, if there is nothing that could be done now, this property might come out as a foreclosure - and you still have a chance of buying it (possibly at a lower price).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Apr 25, 2012
Nikki,

Often the banks are clueless, the short sale department doesn't know what the foreclosure department is doing the REO department does not know what the foreclosure and short sale division are doing, sometimes each has their own law firms that don't know about each other, agents are involved, 3rd party asset managers, auction companies and at the end of the day, on a number of occasions after contracting to sell the property a three days prior to closing they figure out they don't even own the property. That is part of the challenge of dealing with a bank as a seller.

Always when evaluating a property you or more specifically your REALTOR should among many other due diligence steps Google the property address. This would have identified an auction was scheduled. It might also identify a crime, hazard, fire, prior owner information, prior sale information, comments people have made regarding the property, bank or listing agent that would have assisted guide your purchase. Doing a search for sex offenders, crime statistics in the area, potential hazardous sites in the immediate area are also important issues to research before an offer is made.

Also "accepted" is a term often misunderstood. In real estate an offer is not legally accepted and binding upon the parties until singed by all parties and notice of written acceptance has been communicated. This can possibly be by fax of the contract, verbal communication followed by deposit in the US mail or other means. Verbal communication where you do not have a written signature from the seller would not be a legally binding contract. Even if it was, most of the bank's contracts are totally one sided and if you read carefully you will probably find language that the bank can terminate at any time for any reason without penalty, the only consequence they suffer is returning your earnest money.

Hope that helps you next purchase. Get an expert to assist you and you should not have these problems.


Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
CRS, CRB, ABR, MSRE, CDPE, e-PRO, ESQ
Certified Residential Specialist
Certified Real Estate Broker
Accredited Buyers Agent
MS Real Estate and Urban Affairs
Certified Distressed Property Expert
Certified Internet Professional
203K Certified Specialist
Attorney
2050 Roswell Road
Marietta GA 30062
404-978-2281 Direct
404-386-3682 Assistant Robin
678-760-6266 Buyer’s Agent Adam
770-973-9700 Office
bruce@locationlocationlocation.com
http://www.LocationLocationLocation.com
0 votes Thank Flag Link Wed Apr 25, 2012
So there is nothing I can really do about it, right?

accepted our offer : Thuesday
we submitted signed forms: Monday
said it had been auctioned off: Wednesday (today)
0 votes Thank Flag Link Wed Apr 25, 2012
Properties that are sold at auction are pulled from the regular re-sale market a few weeks before the actual auction sale day. In those weeks leading up to the auciton, they will market the property as being part of the auction. Generally, at least 1-2 open houses will be held.

It sounds like the agent might have been trying to bypass that which did not happen.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Wed Apr 25, 2012
This happens when they don't get an extention on the foreclosure date. It's simply a lot of times just a lack of communication between different departments within the bank.
0 votes Thank Flag Link Wed Apr 25, 2012
Simply put, ecause the left hand does not know what the right hand is doing. You could have the listing agent call their contact at the bank, but by the time they got a meaninguful answer, the property would be long gone. This is but one of the pitfalls of chasing forlcosed properties.
0 votes Thank Flag Link Wed Apr 25, 2012
Great Incompetence - If you have ever heard the saying that the right hand does not know what the left hand is doing. Perfect example. It was worse three years ago so things are improving.
0 votes Thank Flag Link Wed Apr 25, 2012
How long from when they accepted the offer to when they sold it at auction? This is not very ethical of them to do it, but unfortunately it's not illegal. Were you working with a buyer's agent?
0 votes Thank Flag Link Wed Apr 25, 2012
The bank said they accepted out offter on a Thursday. We sent in the signed papers Monday. The told us today (Wednesday) they it had already been auctioned off.
Flag Wed Apr 25, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer