Home Buying in Las Vegas>Question Details

Nvlandlord, Home Buyer in Las Vegas, NV

Is discrimination involved when my cash offer was accepted by seller but rejected by lender and sold to a 2nd buyer at the same price?

Asked by Nvlandlord, Las Vegas, NV Sun Oct 2, 2011

A good supportive reason why my cash offer was rejected was not given.

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Answers

33
Price is not the only thing considered when deciding which Offer to accept. Did you ask for Seller Contribution at Close? Did you ask for an Inspection? Did you ask for a Home Warrenty? Did you ask for a longer closing period compared to the other Offer? Did you provide proven Proof of Funds that are seasoned? Did you ask for an Apprasial?
There are lots of reasons for a Seller to accept one Offer over another and claiming discrimination because your Offer was not selected needs to be backed up with proof as to why you feel this way and without knwowing the motivation of the Seller and the terms of the accept Offer you do not have a case.
2 votes Thank Flag Link Mon Oct 3, 2011
There are many unknowns to consider when trying to answer your question. If you are an investor and it was a HUD where they must sell owner occupied initially, that could be a one reason. It is hard to determine what these banks
guidelines are. I think they just make
them up as they go. One thing for
sure is there are so many good deals
you will find a better one. I have seen
it over&over again that when we lose a
deal we really wanted and are
disappointed we always find a better
one if we don' give up. There are so
many to choose from. It is impossible
to figure out how the banks think.
Good Luck
Thank You
Suzie Marquardt
Fahrnyteam@yahoo.com
1 vote Thank Flag Link Mon Oct 3, 2011
Did you actually show the cash in a checking or savings acoount waiting to be be transferred into an escrow in a split second. You have to show where the cash is, not just say it's a cash offer


David Cooper Investing in Las Vegas since 1994
http://www.lasvegaswinner.org 702.499.7037
0 votes Thank Flag Link Wed Apr 17, 2013
Gosh, there are so many variables to take into consideration. Dealing with the banks if that's what you're applying as the lender is difficult. They have a lot of control and sometimes the buyers, sellers and agents can't do a darn thing. On the flip side, I'm sure you will be able to find another place. Good luck.

Penny O'Brien
LVsweetHomes Realty
10120 S. Eastern Ave, 200
Henderson, NV 89052
http://www.SunnyLasVegasHomes.com
702.321.9383
LasVegasNiceLiving@yahoo.com
0 votes Thank Flag Link Wed Apr 17, 2013
The outrage is rather muted here. If there was discrimination, I think that is terrible.

The fact, however, is we wouldn't be able to tell from the details you have offered if discrimination occurred. As the Trulia voices member points out, there is no telling with banks. The discrimination may not even be intentional. The banks probably make enough expensive mistakes in a day that they could justify hiring more employees. Don't hold your breath waiting for it to happen.

As for a business decision, there doesn't seem to be much upside in pursuing a complaint. It probably makes more sense to just go find another foreclosed property or a short sale. There are plenty to go around as others have noted.

On the other hand, things will never change if these things are not made known. If you feel wronged, you should complain. Banks have specific regulations they have to adhere to.

I'm sorry you didn't get your home.

SuZ
PML of Longmont, CO
0 votes Thank Flag Link Sun Oct 23, 2011
How would the term discrimination negatively be used here if it is. Sure they discriminated against the financed offer. 100%, so? Is discrimination illegal when they discriminate based on what offer is the best? They did not discriminate based on color, race, sex, religion, etc. I understand the frustration if there is any, because so many times banks or sellers take cash over finance for me sounds reasons- quick closes, no lender denial issues, less costs, etc.
0 votes Thank Flag Link Sat Oct 22, 2011
What ever terms are best for the bank determines the decision on offers. Closing quickly, rejecting an inspection etc probably made the difference for the successful buyer.
0 votes Thank Flag Link Sat Oct 22, 2011
No, not likely. The lender has the final decission on which offer they accept. The other offer most likely had other terms or conditions that made the other offer more appealing.

Thank You,

Kathy Reynolds, Realtor® - SFR
Prudential Northern AZ Real Estate
928-925-3162 Mobile
928-713-4825 Home Office
866-860-7901 Fax
Visit me at http://www.MayerAzRealEstate.com
Don't Forget - I Love Referrals
0 votes Thank Flag Link Sat Oct 22, 2011
Probably NOT much is taken inconsideration when one sales offer is accepted over another . Short sales is lender right to reject not the property owner .

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Oct 21, 2011
Not likely. As a former designated broker I would guess the other offier had other terms which made it more attractiive to the seller. Sorry but thats how the ball bounces!
0 votes Thank Flag Link Tue Oct 18, 2011
Banks could lose a lot of money if they accepted cash, especially in short sales. As is typical in Las Vegas, the original loan may be, say, $300,000 and the short sale only $100,000. The bank would get back only $100,000; the lost would be horrendous - $200,000. If another buyer offered the same amount of $100,000 with 20% down payment with commitment to mortgage the remaining $80,000 with the same bank for 30 years at a fixed rate of 4.5%, whom would the bank choose? In 30 years, the bank would make $65,734 in interests with this other buyer. In short, banks make money by making loans and charging interests. Cash payments do not make money for banks.

As I said in my earlier post, if the bank didn't know anything about you in terms of race, creed, sex, age, social and economic class, and how you look (fat, skinny, ugly, etc.), there is no basis for suspecting discrimination. What I suggest here seems more plausible.
0 votes Thank Flag Link Mon Oct 17, 2011
I am surprised that you would even know the amount of the other offer!
This is confidential information.
There are so many nuances in an offer; the Bank may accept any offer they want, and they do not have give you a reason for anything.
Discrimination comes into play when you discover that RACE, CREED, AGE etc was the reason: This is pretty much a thing of the past. Really!

Good luck and may God bless
0 votes Thank Flag Link Mon Oct 17, 2011
Unfortunately, when dealing with foreclosures and short sales. The seller can agree to anything but the bank and investors get to make up their own minds about a transaction. The other buyer could have had less contingencies than you, or could have submitted their offer before yours. In Wisconsin the Seller doesn't have to give a reason for rejecting an offer. Perhaps this is the case in Las Vegas, too?
0 votes Thank Flag Link Mon Oct 17, 2011
Discrimination? If the bank didn't know anything about you in terms of race, creed, sex, age, social and economic class, and how you look (fat, skinny, ugly, etc.) how can it be discrimination? Owners have the prerogative to sell to whomever they please as long as they don't use the above criteria and the likes.
0 votes Thank Flag Link Sat Oct 15, 2011
Hi NV Land Lord,

Making offers is not 100% about the sales price; other terms of the contract affect the seller's net, such as who pays for the Inspection, CIC Package, and etcetera. Also, they may have chosen an owner occupant over a secondary resident buyer or an investment buyer.

What do you mean... accepted by seller but rejected by lender? Was this an offer on a short sale? If so, sometimes it simply takes time for the short sale to approve, even if they don't approve it at first. How much time went by between your rejected offer and the 2ns buyer's offer?


Mark Fleysher


http://www.jackconleyrealty.com
0 votes Thank Flag Link Fri Oct 14, 2011
The bank is looking for highest and best use, in addition to their net. Were you going to buy it and rent it out? An owner-occupied purchaser with the same terms will likely be chosen by the bank.
0 votes Thank Flag Link Thu Oct 6, 2011
Price is only one aspect of an offer. if you had any contingincies, such as teh sale was contingent on a home inspection...that is the likely cause. the other common reason for rejection is putting an expiration date on your offer. A cash offer should be clean, do any inspecting BEFORE you put your offer in and offer to close within 30 days or less.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 6, 2011
Likely it had to do with terms of your offer... closing date, inspection, testing... possibly the 2nd buyer financed the home through the lender being shorted or one-upped you in another area of the offer?
Short sales are largely unemotional for the lenders, whose file managers are typically overwhelmed with the number of files on their desks... I would only expect that they have time to discriminate based on what is best for their employers.

I would see if your agent can uncover any reasoning from the listing agent or from the closed sale documentation / MLS closed sale data.

Good luck!

Shawn
0 votes Thank Flag Link Thu Oct 6, 2011
The second offer at the same price that was accepted most likely had more favorable terms for the lender.
0 votes Thank Flag Link Thu Oct 6, 2011
Some banks put a hold on cash investors for the first 30-90 days. Owner occupied only. For the books and to prevent oversaturation. Price is not just only terms in a contract.
Let's work together on the next deal/ investment. I won't show you any that won't work with investors, so your time is not wasted.
I'm located in 89074 & 89052.
Beth Mitro
1-877-702-AGENT
Web Reference: http://AGENTMITRO.COM
0 votes Thank Flag Link Tue Oct 4, 2011
Hello,
I hope you included the POF letter. Penny O'Brien with Simply Vegas
0 votes Thank Flag Link Tue Oct 4, 2011
Hello Nvlandlord, I understand your frustration. All these agents gave you great and sound responses. My guess is that you are an investor, from your name, and it seems like the banks lean more toward wanting to put an owner occupied in the home instead of giving it to an investor. Now to you that may sound like discrimination, but it really is not. I know this concept is hard to understand but it seems the banks play more favorably on owner occupied sales. On many repo's the bank requests that no investor offers will even be considered until the house sits on the market at least 30 days. No worries...you will find another property and while I understand exactly how you feel, there is something out there that is better for you even though you may not feel that way right now. Don't take it out on your agent. I am sure he or she gave it their all to make it happen for you.
0 votes Thank Flag Link Mon Oct 3, 2011
The banks do not only look at price. They consider all terms of the offer. Inspection timeframes, closing date, closing costs, etc. Sorry this didn't work out.
Heather
0 votes Thank Flag Link Mon Oct 3, 2011
Hello NVlandlord,

There are many good answers here. For example, HUD homes must be sold initially to an owner occupant for the 1st 30 days it is listed. Did you submit Proof of Funds that were "seasoned"? This means that they were in the bank account for a certain period of time and not just deposited. Maybe you asked for something in your offer that the other party didn't, like seller contribution, a Home Warranty, or an appraisal. If it was a short sale and you didn't agree to a length of time for the bank to decide, that could have been a factor. Another drawback would have been If you wanted a later close and the other offer was willing to close sooner. There are many reasons for a seller to accept one offer over another and we the agents generally do not know why. The only way discrimination could be a factor is if you fit into one of the "protected classes", and like the other agents said, unless you submitted your picture and personal profile with your offer that couldn't be it. And we have a large inventory of properties available so I would advise you to just put it behind you and move forward. Find another. It's a bit of a feeding frenzy out there with the depressed values so don't lose heart if you lose an offer. I personally had to submit 21 offers for one of my buyers before we were successful. This probably isn't what you wanted to hear but it's just the way the market is right now.

Barbara Richie, REALTOR, SFR, SRES
"Experience that counts. The expertise to make it happen!"
Encore Realty Group
7465 W Lake Mead Blvd Ste 100
Las Vegas, NV 89128

702.521.5299

lvrepro2000@gmail.com
0 votes Thank Flag Link Mon Oct 3, 2011
Highly unlikely.

That is, it's highly unlikely that your offer was rejected by a lender based on one of the defined protected classes (race, religion, etc.).

There's no requirement that the lender provide "a good supportive reason"--or any reason, for that matter--for rejecting an offer.

Your Realtor may be able to provide an educated guess as to why your offer was rejected. Ask him/her.
0 votes Thank Flag Link Mon Oct 3, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Im not sure how this could be discrimination ?? Do they know what you look? like and it cant be over "cash vs loans" that's not in the protected class. There could be something else in the offer that superseded your offer. Cash is not always king like some people think . If someone is solid there money is just as good as cash. It could even be that you were investing and they had a family that was going to make a home there. There could be so many reasons they didn't choose your offer.
0 votes Thank Flag Link Mon Oct 3, 2011
Too many uknow factors @ this point, was it a foreclosure, short sale
a fannie may property where the they will only do owner occupied
offers for the 1st 30 days it is listed. Need to know more about the deal.

Thanks
Jimmy Balsano
Realty One Group
702-281-2225
Fax 1-866-371-8421
I KNOW LAS VEGAS AND HAVE FOR 40 YEARS

http://www.rapidsellers.com/jbalsano
http://www.salestraq.com/las_vegas/newhomesearch/index.cfm?id=4780(New Homes)
0 votes Thank Flag Link Mon Oct 3, 2011
This could be a scenario that occurred- you offered cash at let's say -$50,000- then another offer with financing comes in higher- the bank takes that- but then the appraisal comes in at $50,000. And the bank agrees to sell for that price- this could be a plausible explanation. Have your buyers agent reach out and get the order of events from the listing agent.
Web Reference: http://Mayteamlv.com
0 votes Thank Flag Link Mon Oct 3, 2011
Cash does not mean much and it means even less to a bank. Many, like you, think that cash gets you some sort of discount when that just is not true. To bring up discrimination is laughable, did you include a picture with your offer?
0 votes Thank Flag Link Mon Oct 3, 2011
For one reason or another it was not meant to be. Move on.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Oct 3, 2011
How could the bank discriminate? The person rejecting or accepting offers has never met you, nor have they seen a picture, etc. The other offer was superior for whatever reason.
0 votes Thank Flag Link Sun Oct 2, 2011
Sounds like a short sale, yes? For various reasons your offer may have rejected. Price isn't the only term important to the short-sale lender. Also, was there a time period of more than 45 days between your offer and when it finally sold? I ask because often a bank denies the short sale at a particular price because it is lower than what they belive it is worth. So the listing agent puts it back on the market, time goes by with no offers, the values decline, and new offer comes in, and then the bank is "convinced" to sell it at that price.
0 votes Thank Flag Link Sun Oct 2, 2011
Nvlandlord,
Discrimination is generally and issue when a protected class is involved. If the reason your offer was declined was due in some way to you belonging to one, than perhaps. Strictly being a cash buyer, while this may be technically a minority, is not a protected class in the same way race, religion or gender are.
A seller and lender may use whatever decision making process they care too as long as these issues are not factored in.
If you believe there is an issue of discrimination, you'll need to speak with a lawyer to see if you have a case.
0 votes Thank Flag Link Sun Oct 2, 2011
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