pmarquart60, Both Buyer and Seller in Stanwood, WA

Bank Owned home

Asked by pmarquart60, Stanwood, WA Sat Jan 26, 2013

We put an offer on a bank owned property. Several bids went in. Ours was rejected. They came back two weeks later and asked if we wanted to resubmit our bid. We resubmitted and now we are in limbo. Can we pull the offer without losting our Earnest Money? I know you can cancel an offer on a short sale, what about a bank owned propery?

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Bill Eckler’s answer
This is not an unfamiliar situation in the world of distressed sales. What does "in limbo" mean exactly? Has the bank accepted your offer? If they have accepted it, do you have a bank signed document agreeing to these terms?

If you are still one of several, it would seem that you should be able to withdraw your offer. On the other hand, in the event the bank has accepted your offer and there is agreement, you could have a financial responsibility to them. As explained, the information isn't clear enough to provide good advice.

As always, buyers should consult their personal agent or attorney as the best source of reliable information.

Good luck,

0 votes Thank Flag Link Sun Jan 27, 2013
If it is just an offer, then you can put in writing a request to withdraw and cancel your offer. They should not have deposited your deposit yet if there is no offer. you should get your check back. Your agents should be guiding you through the process.
0 votes Thank Flag Link Sun Jan 27, 2013
No seller wants a potential buyer who really wants to avoid closing. Why not just ask the bank to release you and give your money back?
0 votes Thank Flag Link Sun Jan 27, 2013
Did the bank accept your offer? Do you have an executed contract? Did you have an inspection time period on your contract? Most bank foreclosures allow at least 7 days to inspect and some up to 15 days. You have the right to cancel the contract within that inspection period and get your earnest money deposit back. You should ask your Realtor these questions. They should be able to help you.

Tammy Hayes, Realtor
Green Lion Realty
0 votes Thank Flag Link Sun Jan 27, 2013
I agree with James - bank owned homes as a norm do not require an escrow deposit with the offer so I am curious about why it was requested without a fully executed contract.
0 votes Thank Flag Link Sun Jan 27, 2013
I have never seen a foreclosure listing where the bank required a deposit prior to acceptance of the offer. They require proof of funds or a letter of mortgage pre approval but no escrow deposit prior to fully accepting an offer. If you have a fully accepted offer, there should be no limbo. You should have a fixed closing date and no other questions. You have a right to inspect and cancel the contract if the inspection turns up any defect that you find warrants cancellation.

If you do not have a fully accepted contract you can simply have the agent write a withdrawal of offer and receive return of your deposit. I don't see why your agent would have asked for a deposit without an accepted offer.


James Mulligan, Broker / Owner
Suncoasteam Realty, LLC
Po Box 380503
Murdock, FL 33938
941-235-7474 Office

Office Location:
4055 Tamiami Trail
Port Charlotte, FL 33952
0 votes Thank Flag Link Sun Jan 27, 2013

Why would you want to play games like that with the realtors and seller if you're not ready to complete the deal if your offer is accepted?

You put up a Good Faith deposit for a reason, its your promise to complete the deal if your offer it accepted and to Fulfill your contractual obligations of that money if forfeited.

Make sure you are ready to close on any offer you make that is accepted, if not move on. There properties in Florida are going up 6% in price, so do your due diligence, but be ready to follow thru with any offer.

If you need a loan, you need to get fully qualified with letter in hand to make offers of you’re going into battle riding a crippled donkey, swinging a dull butter knife.

You need to have a solid Pre-Approval Letter and have deposited Good Faith money in a title co. or realtor’s escrow account and have an Escrow Letter and make sure BOTH are sent with your offer.
0 votes Thank Flag Link Sun Jan 27, 2013
Hi pmarquart60,

If the bank has not accepted your offer in writing you do not have a contract yet. Have your Realtor do a withdrawl of offer before the bank accepts your offer in writing. You should get your earnest money deposit back.

Now, if the bank has accepted your offer in writing, you can cancel and get your earnest money deposit back as long as you are cancelling for an 'acceptable' reason (which would be stated in your contract).

There is no difference in cancelling a contract whether it is a standard sale, short sale, or bank owned property.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Sat Jan 26, 2013
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