Home Buying in 92880>Question Details

lnsargsyan, Home Buyer in Pasadena, CA

Ok this is the situation I gave an offer to a forclosured home, someone offered more and its been 3 weeks we found out that they can't qualify

Asked by lnsargsyan, Pasadena, CA Thu May 9, 2013

for a loan, now i guess they are trying to get a loan by doing the major work in the house. the house still pending and they have until the May 20th to get a loan. they do not own the house yet what is going on. are they untitled to do whatever they want ? i am irritated because i am pre-qualified

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Answers

14
Its time to move on. There are plenty of standard sales in Corona. Why mess with the bank's REO property. Call me we can discuss your options.

Mike Carman
Realty One Group
Homes-Lives-Dreams
951-258-2728
1 vote Thank Flag Link Sat Mar 22, 2014
If you're working with a knowledgeable agent, they'll be able to help you get to the finish line. Call your agent.
0 votes Thank Flag Link Mon Sep 15, 2014
Sorry to hear you lost the bid.

Well, if you are sure....you call the Marshalls out...and get them to stop work....


......if you are wrong... then you have a problem .

So be sure, that you are right.

Goodluck.
Ruth
0 votes Thank Flag Link Fri Aug 8, 2014
Your agent should ask the listing agent about getting your offer in for review by the bank. Short sales can be time consuming and sometimes challenging, but there are many short sale transactions completed every month.
0 votes Thank Flag Link Fri Aug 8, 2014
Sounds like you don't have representation from an experienced agent or broker, or you would likely not have these questions. If you don't yet have a good agent working on your behalf, it's time to call one.
0 votes Thank Flag Link Tue Apr 15, 2014
If the house is still pending sale, then those buyers are still trying to purchase the home.

Lorena Kelder
Realty One Group
License #01711804
(951) 314-1429
lorelise@sbcglobal.net
0 votes Thank Flag Link Sat Mar 22, 2014
If you are still looking, I may have the "Home Buying Winning Lottery ticket" for you. I had an offer accepted in Eastvale, and buyers had financing woes and had to back out. Now I have an accepted offer, and no buyer! Seller's agent is willing to substitute another for the lost offer... Interested?
0 votes Thank Flag Link Fri May 17, 2013
john Juarez is correct, if that is the case.
0 votes Thank Flag Link Fri May 10, 2013
If the current buyers who are in contract could not get a loan because of the condition of the house you might have found yourself in the same predicament if your offer had been selected. Just because you are prequalified is no guarantee that your loan will go through. Lenders have certain standards that the home (the collateral for their loan) must meet. Lenders often refuse to make a loan on a house that they deem to be unsuitable until changes/repairs are made. The REO seller rarely makes repairs. I have never heard of an REO seller who will allow a prospective buyer to work on their REO house, either.

I think you need to look for another house. If the current sale fails it is likely that the bank will simply put the house back on the market and another round or multiple offers will follow.
0 votes Thank Flag Link Thu May 9, 2013
Repairs are more than likely being paid for by the lender holding the note on the nonperforming asset, as it is in their best interest to do so. Which means that the current buyer will get the house, even if a request for an extension beyond the May 20th deadline is needed.
0 votes Thank Flag Link Thu May 9, 2013
It sounds like repairs were needed to bring the home up to the standards required for it to be loanable. This is often the case for an FHA loan as their guidelines are more stringent. It is unusual for the buyer to make repairs pryor to loan approval, as they would lose the money invested in repairs in the event the loan does not go through. It is also unlikely for the seller who is in foreclosure to make repairs, and often times the bank holding the note will make repairs because it is in their best interest to do this so that they can be rid of the nonperforming asset. So long story short, based on the information you have given, the loan will close with the current buyer, even if they are not ready by may 8th, an extension will be requested and likely approved.
0 votes Thank Flag Link Thu May 9, 2013
Banks pretty much do what they want to do. This is a fact. If that is difficult for you, I genuinely recommend looking for a home that is not tied to a bank.
0 votes Thank Flag Link Thu May 9, 2013
Like Derrick, I am skeptical:
Information is generally kept confidential. If this this came thru the Listing Agent, I would be suspicious. If it came from anywhere else, I would discount it entirely.

You are a distant 2nd in line; in fact, there is no line.

In the best senario, the Bank will ask for a new round of Offers.
The Bank does care about your feelings, one way or another.
0 votes Thank Flag Link Thu May 9, 2013
Hi Ron we got the information from the agent that they still don't have a loan to close the escrow. so it is not the bank that's fixing the house those people are actually fixing the house but escrow still pending they don't own the house yet
Flag Thu May 9, 2013
So you made an offer on a foreclosure - you were beat out by another offer that was higher and now you found out somehow the other buyer has been declined due to financing but if they do "x" work they can get a loan? Is that the case?

First, yes banks can do what they want really, they are the owner and they must have seen something in the other offer they felt was better. As far as work, rarely do REO or bank properties let just anyone on their property to do repair work so its somewhat hard to believe they are just able to walk in and do "major" work in the home to get a loan.

Sometimes banks will find out after listing they have work they need to do to get it sold/closed and may do some work in the home themselves. I would be curious and be able to answer more I think if we knew...

1. Why did the other buyers loan fall thru?
2. How do you know it fell through - what was the source?
3. The major work - what is it?
0 votes Thank Flag Link Thu May 9, 2013
Hi Derrick The bank is not doing any work they were selling the house as is. They still in Escrow but we found out from the agent that they have a problem getting a loan so I guess they are fixing the bathrooms to be able to get a loan I am confused myself I thought once the paperwork is done than your able to fix anything you want . They are fixing the bathrooms those people not the bank . I don't know what is the problem with their loan, but they have a dead line until May 20th
Thank you for your help I appreciated it
Flag Thu May 9, 2013
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