Home Buying in 91607>Question Details

Md, Home Buyer in 91607

Hello, I live in southern CA. In consultation with my real estate agent, I made a lowball offer on a condominium facing foreclosure. The

Asked by Md, 91607 Tue Mar 16, 2010

seller's agent refused to show the offer to the seller or to the bank. She said the seller's consent was not necessary and that she knew the bank would refuse the offer. Do I have any recourse?
MD

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The seller can instruct the agent to only show offers that they think the bank will look at. You can ask them to sign the rejection of the offer but they are not obligated to do so. The point is, the banks are really not entertaining low ball offers and the sellers agent knows this. The bank does a BPO and they expect a reasonable offer within the range of that BPO or the seller may end up in foreclosure. The goal of the seller is to get the bank signed off on the short sale so they do not want to submit a offer that is deemed unacceptable. It is your right to submit an offer, it is their right to not accept.

I must tell you that if I was doing the short sale I would also counsel my seller to refuse the low ball offer because that would be in the best interest of my client. Short sales are far more work than the average person realizes, so... when I take them on I do expect my clients to listen to sound advise of experience and knowledge. Accepting a low ball offer as good as telling the bank you want a foreclosure. There are statagies and logic to follow when it comes to short sales. You don't submit over the comps because if the buyer walks you may not get another that high but you cannot go to low either, it needs to be within reason.

Good Luck
Web Reference: http://www.di4homes.com
1 vote Thank Flag Link Tue Mar 16, 2010
MD,

I you want the condo you should consider writing a better offer - that is your recourse. Even though the seller is facing foreclosure, that does not mean that a lowball offer will get you the condo because the seller is desperate. The offer has to be good enough that the lienholder will agree to the price and approve that aspect of the short sale. Submitting low offers that have little chance of being accepted just eats up valuable time and takes the seller closer to foreclosure.

Good luck with your house search.

Angie Simpson
Coldwell Banker
0 votes Thank Flag Link Fri Jul 15, 2011
Making a low ball offer was your first mistake. Depending on the advice of your "agent", most low ball offers are rejected outright. The bank does what is called a BPO to price the house for the market and in conjunction with the market analysis of the REO agent, a price is determined. In this market, if the REO is desirable, it will sell at or above the listing price. I would suggest that you do your homework on what the properties in the area have closed for within the last few months. If based on that information you determine that a property is overpriced, then either wait for it to sit for a while or move on to a property that is priced right before deciding to low ball.
0 votes Thank Flag Link Thu Jul 1, 2010
Dear Md,
Your agent was likely following the directions of the seller or bank. Some sellers will not consider offers under a certain amount and are very clear in letting the agents know this. My best advice is to have a long conversation with your agent and find out what an "acceptable" offer might be.
0 votes Thank Flag Link Wed Mar 17, 2010
Sellers are not required to look at offers. Sellers are not required to acknowledge offers. Sellers are not required to respond to offers

If the is a short sale situation, ditto the lender.

If the agent is making all of the decisions, the agent is not doing their job. If what was conveyed to you by the agent was that the seller did not want to look at your admittedly low-ball offer, what do you expect?

Do you have any recourse? Recourse for what? Your low-ball offer has been refused.
0 votes Thank Flag Link Tue Mar 16, 2010
The agent may be right about the bank not accepting a low ball offer. An offer cannot get submitted to the lender without the seller's approval. So a seller has to accept your offer before any lender will look at it. Unfortunately there really isn't anything you can do. If you would like something in writing you can go back and ask them to sign on page 8 of the purchase agreement the 'rejection of offer" line at the bottom of the page. Just keep in mind a seller has no obligation to respond to your offer.
0 votes Thank Flag Link Tue Mar 16, 2010
If this is a short sale, the seller does not have to accept the offer. If the seller wants to reject the offer he/she can.
0 votes Thank Flag Link Tue Mar 16, 2010
Hello MD,

Please ask your agent to contact the DRE as they have in house attorneys. In my opinion the agent should show all offers. I don't think you will have recourse other than reporting it to the DRE.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Tue Mar 16, 2010
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