Home Buying in Portland>Question Details

Marissa Nola…, Home Buyer in Portland, OR

Bank is changing terms of sale after closing date has come and gone

Asked by Marissa Nolan-layman, Portland, OR Tue Oct 2, 2012

We put in an offer, had it accepted went through inspections, appraisal, etc. We did everything asked of us. Were supposed to close this past Friday. 2 days prior to closing we were informed that the bank had not started the recording of the deed in lieu process and we would have to extend the closing. The sellers agent wrote up an extension and we signed it, however, the asset manager refused to do so and changed positions on the 1st. The new asset manager came in yesterday and required us to re-submit our offer and COUNTERED changing the terms. Of the offer that had previously been accepted and we should have closed on already! In the end I really just want to buy this house but they have taken away the money towards closing that made it possible to do so. Is there anything we can do?

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HIre an attorney an get the facts straight. Tom Inglesby, RE/MAX Equity Group
1 vote Thank Flag Link Wed Oct 3, 2012
Marissa: When you say that your offer was accepted, were there "conditions" of the acceptance stating that it was subject to investor/bank's final approval concerning the deed in lieu or foreclosure? Your agent should have received and reviewed the documents - along with the preliminary title report and status of the foreclosure or deed in lieu, prior to closing, and discussed with you the possibilities that this process might be delayed by the seller's lender. Unfortunately, they have the ability to decline your offer to purchase. I would suggest having your agent meet with the seller's agent and trying to reach the new asset manager by phone to discuss a possible outcome. If the seller is unable to provide you a clear title to the home and allow closing, there should be no loss of your earnest money. - Mike
1 vote Thank Flag Link Tue Oct 2, 2012
There were no conditions and the deed in lieu was never mentioned until 2 days prior to the agreed upon closing date. The sellers agent was surprised buy it as well.
Flag Tue Oct 2, 2012
Thumbs up to Tom. We shouldnt be armchair legal advisors anyway.
0 votes Thank Flag Link Wed Oct 3, 2012
then don't post!!! maybe there are some legal experts that view these threads, and can give legal advice!!
Flag Thu Oct 25, 2012
Hi Marissa,
It's not clear whether this property was listed as a bank-owned home or as a short sale. Perhaps the lender negotiated a deed-in-lieu with the previous owner, but somehow did not record it, which means they did not have the authority to sell the home. That means the sale agreement you had with the bank to purchase the home was invalid. This might be why you were asked to resumbit your offer.

It sounds like you really want to buy this house, and the seller has countered at the same purchase price, but is not agreeing to pay toward your closing costs and pre-paids, which you need them to do so you can purchase the house. Correct? If the appraisal came in higher than the agreed-upon purchase price, perhaps you can increase the offer amount and ask for the difference to be paid toward your closing costs. Otherwise, if the seller won't pay the amount you need toward your closing costs and pre-paids, and you can't obtain the money elsewhere, you may not be able to close this transaction.

Talk with your buyer's agent and get their advice.
Best wishes to you.
Sally Mehalovich, Oregon Principal Broker
Amerivest Realty of Portland
0 votes Thank Flag Link Wed Oct 3, 2012
Thgis is a strange new world. Remember the lender doesnt own the home. The lender isnt acceptaing a purchase, the seller actually has to but the lender doesnt have to short their loan so they are pulling the sellers strings. Unfair but they can do anything they want. I know of no precident setting suits but many of the things lenders are doing or not doing should be addressed by the legal syatem.. They are fickle as he**, to be blunt. There are many reasons why they could be pulling this on you including a latest Broker Price Opinion that came in high. Many BPO agents shouldnt even be licensed. You have not given enough information for us to fully judge this but it sounds like the lender was acquiring the property by deed in lieu? That means the lender would become the owner /seller. It would then be an REO sale. There is a lot of background that the public needs to know. The entire process is a conspiracy anyway, in that our wonderful government protects the lenders against loss, and the amount of oney thyey get back depends on the method used to aquire the property or their partial loan back through a process such as short sale. Its all a scam. Lenders never did intend to accept loan modifications.
0 votes Thank Flag Link Tue Oct 2, 2012
Seems like all the facts were not disclosed. Seller is doing a short sale now there is a Deed in Lieu being processed? That would change everything. The seller must have started the Deed in Lieu some time and also is presenting a short sale to the bank. Now the bank has more options and can pretty much do anything they want which is standard anyways.

Not sure what you mean by they took away closing money, if it was escrow money you should get that all back. As far as buying this property either walk and wait for it to come back on the market as REO or take what the bank is offering.

Kevin Sucher
Principal Broker
0 votes Thank Flag Link Tue Oct 2, 2012
*ran out of room.
Monday comes around and we were told we had to re-submit our offer and start over fresh. So they re-submitted it for us. And the new asset manager countered with the same sales price and no closing costs and a close date in December. We have completely packed our home and are living out of boxes because we were supposed to have moved this past weekend.
Flag Tue Oct 2, 2012
The bank is the seller, this is not a short sale, it's a "Homepath home". The original owner is long gone. The bank waited until 2 days before our scheduled closing date to begin the process of recording the deed in lieu, which I have read while in this case is extreme is fairly standard practice to wait unti they have a sale secured in case a lien comes through on the property. It has always been in the hands of the bank/asset manager.

Our original offer/sales contract had been Sales price + $5000 towards closing costs and closing day of 9/28/12. When we couldn't close due to the deed in lieu not being recorded we were told we would have to do an extension. So we signed what was given to us from the bank's "seller's agent" and then were told that the asset manager refused to sign the extension, that he was angry that he hadn't closed the deal in time to get his cut before changing positions. So we were in limbo all weekend waiting to see what the new asset manager would do on Monday.
Flag Tue Oct 2, 2012
My question is whether the someone, i.e. the bank, failed to timely perform their express or implied duty.

It is not clear what kind of deal you have going because I am not used to seeing a property for sale where a deed in lieu is a condition.
0 votes Thank Flag Link Tue Oct 2, 2012
It was being marketed as a foreclosure not a short sale. We were never informed that it was a Deed in Lieu sale until 2 days prior to closing.
Flag Tue Oct 2, 2012
Welcome to the world of short sales. The counter on terms have reopened the negotiations so everything is open to renegotiation at this point. Unfortunately for you, the lenders have a wide margin for agreeing to discount their investment on the property, and they have a lot of work to do before they can actually sign off on the discount including determining if the price agreed on is fair market value. With the change of asset managers at the bank, it is very possible that the new asset manager has a different approach to the value of the property....remember, the asset manager is not trying to sell you the property, they are trying to protect the asset value for the bank and the the bank investors.Lenders try to keep all their options open so that they can limit or retract prior consent. Often the lenders will give a verbal agreement but the buyer does not receive anything in writing until the actual closing. This practice gives the lender an 'out' if things change for them at the last minute. I am really sorry you invested your time and money into this purchase. Best of luck. Karla Divine, Principal Broker Divine NW Realty 503-819-6923
0 votes Thank Flag Link Tue Oct 2, 2012
Do you have an agent representing you?
0 votes Thank Flag Link Tue Oct 2, 2012
Flag Tue Oct 2, 2012
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