Home Buying in 60185>Question Details

Pinkturtles99, Home Buyer in 60542

WAMU unethical! We made an offer for over asking price on a bank-owned home on 2/14 and received confirmation same day that it had been submitted bank

Asked by Pinkturtles99, 60542 Wed Feb 23, 2011

Our realtor told on 2/14 there was another offer & to submit highest, we did.Our realtor followed up after the "72 hour" time to hear back & broker hadn't heard from bank.2/21,our realtor found out that they had put it into auction status for April, AFTER reviewing our offers.The broker didn't tell him,he found it online.Orig.listing reqd preapproval,we have preapproval for purchase price renovation.I talked to asset mgmt person.She told me the bank considered our offer for a few days & she encouraged them to take it,so ours was best/highest.They felt we MIGHT pull out or ask for more after inspection,even though offer was "as-is" & we are aware of the issues with the house.Bank also thought it wouldn't appraise for over asking.It sat at $17K more than current price for a long time.Wont accept our offer & wait 7 days for our inspection & appraisal,bank has nothing to lose, but will wait 2 months to auction & MAYBE sell?! That doesn't make sense!Something is fishy here.What can we do?

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Answers

5
John's probably right. WAMU (now Chase) would rather foreclose and collect on the insurance claim, in addition to having a write-off on their balance sheets which reduces taxes they pay to Uncle Sam. Many banks will also sell the property multiple times to different wholesalers. They collect a fee each time it's sold, and simply record several Deeds with the county so you never know who actually has the right to sell the house.

I've been Clear To Close on HUD REO's before, only to have the loan die because the seller couldn't get a clear title. The seller never had the legal right to list the house for sale because they weren't the owner of record.

It's all a huge money making scam. You think the big banks are making billions in profit simply by checking account overdraft fees??

Good luck Pinkturtle. My $.02.

Mike.
mcline@waterstonemortgage.com
0 votes Thank Flag Link Wed Feb 23, 2011
I have seen where the bank into consideration the previous owner having PMI on the defaulting non conforming loan and the bank doesn't want to lose the PMI coverage so rather let the house foreclose and keep the insurance intact. I had a buyer that had an accepted offer and still the house was scheduled for auction! In the off chance that the deal blew-up, the bank had a parallel track going on. The bank is looking after the best interests of the bank. I doubt there are any shenanigans. You do have the right to know if the listing agent was a dual agent and if there was a variable commission involved that put you at a disadvantage to the other buyer.

Good luck! Sounds like you fell in love with a house. This is no different than if a regular seller flaked out and decided not to sell to you. You cannot sue for performance, only for damages, unless you have a contract signed by both parties.
0 votes Thank Flag Link Wed Feb 23, 2011
Planning to fight a big bank, I would walk away.
0 votes Thank Flag Link Wed Feb 23, 2011
I would have your current agent ask the listing agent if the other offer was hers (dual agency) and see if she has a special interest to put your offer on the back table. Bottom line the bank can do anything they want and there are no rules. This is the tough part when dealing with short sales and foreclosures, there is no logic.
0 votes Thank Flag Link Wed Feb 23, 2011
Consider consulting with an attorney who specializes in real estate and short sales, see what options you may have at this point...
0 votes Thank Flag Link Wed Feb 23, 2011
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