Home Buying in 55449>Question Details

Adollar66, Home Buyer in 55449

We are in a process of buying a Foreclosed home. We just got inspection done

Asked by Adollar66, 55449 Tue Aug 4, 2009

there was not much wrong with the home compare to other foreclosed property. So we decided to ask the bank for $5000 in price reduction from the asking price and extension for another 10 working days on closing date. We have completed all paper work and lender is just waiting on title. It has been 5 business days the bank has not responded.
my questions are
1. can the bank take any other offers at this time of point from any other buyers ??
2. can the seller agent show the property to other buyers ?
3. if the lender does not get the title on time ..is it possible that the bank can cancel our contract ?.
4. if the bank doesn't want to give us $5000 in reduction ..will they have to inform us in writing ? or is it possible that they can just go ahead & cancel our deal ? or if we tell the bank that we don't want a $5000 reduction at this time ..will that help ?

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BEST ANSWER
Adollar66,

1. In the scenario as you presented you don't have what is known as "final acceptance." As such, the bank is free to withdraw from your negotiations to pursue other options at any time. Until all parties have agreed on all the terms, signed a purchase agreement stating those terms, and then delivered it to the other party, the deal is not done.

2. That depends on the terms of the agreement - but since you don't have final acceptance - yes they can. Once you have acceptance they still may be able to show the property (depending on how the deal is structured) to prospective buyers to solicit backup offers.

3. Yes, as previously noted in your other post:

http://www.trulia.com/voices/Home_Buying/hi_i_have_signed_al…

Time is normally of the essence in a real estate contract. In the end all parties must perform on all promises or the purchase agreement is null and void.

4. You will normally have the right to accept the deal as originally agreed upon (before you countered the inspection contingency), but that depends on the bank and simply having the right doesn't make it easy to enforce. In this situation if the bank wants to move on they probably will and to enfore your right to accept, you would need to hire an attorney and sue the bank for specific performance.

4b. At any time you may remove your contingency and inform the bank in writing that you accept the deal as previously stated. As long as you deliver something to their agent in writing to this affect, before they deliver you a notice of their intent to cancel, you should be more than fine.

A personal note: Buying a house is a very emotional process. You found a house, fell in love with it, wrote an offer, waited for it to get accepte, did an inspection, made a counter and now your are panicing because after all that you are afraid you might lose the house. My advice would be to stay the course and wait for the bank to respond, unless this is such an absolutely good deal that you just can't live without it.

Cameron Piper
#1 Trulia Agent in MN
Web Reference: http://www.campiper.com
1 vote Thank Flag Link Tue Aug 4, 2009
Hi- If your in the process of buying a bank owned property you have to be working with a realtor, so these questions are all the questions you should be asking your realtor.

Stacey
0 votes Thank Flag Link Fri Sep 14, 2012
Adollar66, Buying a bank owned property can be scary there are many details that need to be managed as well as the time frames. Some banks have the properties with investors so each change to the purchase agreement has to go back out to the investors for approval or rejection. I have had deals take one month and deals take 6 months after the acceptance. Once that is complete then it is making sure the title is in order. Sometime this can be lengthy as well, depends on the signatures you need for which source. One thing I can say in all my buyer side foreclosures is that it is important to communicate on a regular basis and be patient, sometimes neither agent knows where the bank is at with getting your documents signed and processed. Have your agent review your questions with you and show you in the contract your concerns listed above.
0 votes Thank Flag Link Tue Apr 13, 2010
You need to check with your realtor, all these bank addendums are a bit different.

I am a bit confused as to why if there wasn't much wrong with the home you would ask for additional money off, especially $5000. Home inspections on a foreclosed property are more for your information purposes then anything and not a way to wiggle out more money from the seller. The property is being sold "As Is" and unless there is something substantially wrong that wasn't obvious or something you didn't anticipate from the beginning it isn't a point of re-negotiation. If its a good home and priced well they very well could be other or back up offers on it.

I hope you have a buyer representative assisting you who has experience with foreclosures. They are unique and need to be handled carefully.
0 votes Thank Flag Link Wed Aug 5, 2009
Greetings,
Your questions read like you don't have a Realtor or you have a new one.

READ WHAT YOU SIGNED....
Does the addendum to the purchase agreement (most REO properties have an addendum) read that the seller reserves the right to cancel the agreement at anytime?

Does it say the seller can accept offers at anytime?

If there wasn't much wrong with the property why ask for the price reduction. That statement reads as though you had a binding agreement, did your home inspection and then sent over an amendment. Your amendment is not ONLY requesting a drop in the price, but an extention to the closing date.

If you are using the seller's attorney, the delay in the title exam is seller delay, if you are using the lender's attorney (or your own) the delay is buyer delay.

Have you ever hear the expression He who has the Gold makes the Rules?

Good Luck,
0 votes Thank Flag Link Tue Aug 4, 2009
All these questions can only be answered by the agent you are working with or an attorney that has reviewed the contract - it all depends on how things were structured in the original agreement.
0 votes Thank Flag Link Tue Aug 4, 2009
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