Unfortunately, The banks are sometimes not up front with the Realtors who are handling the sale. I have had a bank list a house with me and in the next 2 weeks have the house go into auction. At that point, it is very difficult to take an offer and make it work. We are all together in this very confusing and emotional time and need to be honest and upfront with any details we may have. It is a very frustrating market, but it will get better!! The best advice I have, is to deal with an experienced, reputable REALTOR who has your trust and best interest at hand. We are bound by a code of ethics, and are highly trained professionals.
I have 25+ years experience and know that cycles come and go. Keep trying and you will find exactly what you need!!

Hello M and thanks for your question.

Unfortunately, sellers (and lenders) can do whatever they want prior to forming a contract with a buyer. In short sale situations, even after the seller has signed the sales contract and agreed to sell the home to the buyer, the lender can squelch the deal by failing to approve the price, and then force the seller to relinquish his/her home in foreclosure or a Trustee's Sale and Auction. In most cases (short of death), the change in the sales "game plan" has more to do with circumstances outside of the real estate agent's control.

To learn more about why the situation changed on a home for which you were interested in purchasing, have your Realtor talk with the listing agent. It's likely that the situation was forced by the lender, and was not the decision of the seller or agent at all.

Good luck and happy house hunting!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

If your offer was low and they declined it then they can proceed via auction if they wish. Or is the auction price lower than your offer?

It may not have been their decision. ASk the agent what's up?