Home Buying in 93306>Question Details

Allen, Home Buyer in Bakersfield, CA

Weird transaction in Bakersfield

Asked by Allen, Bakersfield, CA Sat May 17, 2008

I just had something odd happen and am hoping someone can shed some light. Home in question is an REO, 2500 sq ft, 5 bdrm, 2-story in good condition, asking price $225,000. I'm using a buyers agent who I also happen to be renting from currently (there's your first "hmm"). So about three weeks ago I make an offer on the property with a pre-approval from Wells-Fargo for $225,000 plus closing costs and an $11,000 credit for a new roof to get rid of the shakes. Although the property was listed as "active" on the MLS before my offer and went to "contingent" the day after I made the offer, my agent tells me that there are suddenly 15 offers on the property.So the bank accepts another offer after calling highest and best and I don't get the house, but now after two weeks it's back on the market at $215,000! Does anyone else smell fish here or is it just me?

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hi Allen,
Bakersfield is a hotspot for short sale/ reo's , a property can be active then changed to pending or contingent when a bank accepts a bid , please realize that these properties more often than not go into multiple bid as soon as the same daythat they are listed this is not your REALTORS fault. Banks ask their agents to ask for highest and best which in turn they tell your realtor and your realtor should tell you, sometimes there is no highest and best and the bank just picks one.maybe because of another problem the deal might fall apart and be put back on the market...hurray go get it!! SAMPLE:as a recent event ,a hvvc has been put into place and now with apples[3 bdrms] being compared to oranges [4bdrms]appraisals cannot be challenged even though it might be an appraiser from out of town,appraiser doing wrong comps,appraiser not knowing towns MLS System or a variety of reasons.Dont blame the realtor,ask the questions!
0 votes Thank Flag Link Thu Jun 18, 2009
Hi there Allen. This does not sound too strange. Welcome to the World of Buying REO's.
Banks are acting erratically lately when it comes to their REO Inventory
Kind Regards
Michael Barron
0 votes Thank Flag Link Sat May 17, 2008
Banks don’t like deals filled with lots of inspections or credits. The other offer might have been a cash offer with minimal inspections that they used to get out of the contract. You might want to re-submit your offer and see if they take it this time. I would not include any credits just place the offer price where you want it.

You could have an inspector go through the property first and then make the offer without any inspections.
Web Reference: http://gregbroadbent.com
0 votes Thank Flag Link Sat May 17, 2008
Allen your Realtor is in all likely hood doing a good job for you. The REO's have suddenly become so popular since people have a perception of getting a "good" deal. There are sometimes more than 50 offers on these properties and the response from the bank is VERY slow and tedious! Sometimes a buyer qualifies and has credentials saying so and then they do something off the wall like going out and buying furniture or a car before the property closes thereby destroying the FICO #'s established to get the home loan (the loan institutions always rerun credit just before close) and then do not qualify for the loan. So I guess in closing I just want to say please don't feel your Realtor has done you a disservice until you really know that.
0 votes Thank Flag Link Sat May 17, 2008
Allen: It is not unusual for an REO bank to call for highest and best, and accept the highest and best based on $$$ alone. Often, when the bank presents their addendum, which attempts to absolves them of liability for everything including their own acts, the buyer decides not to buy. Or perhaps, the highest and best buyer determines, after inspections, that they have offerred too much and bank will not make repairs. Lots of reasons for an REO deal to fall out. (I have a client who has been overbid 4 times on the same REO. Each time it goes into escrow and 1 to 3 weeks later falls out.) So this could very well be just the normal progression of an REO deal. They are not as straight forward and easy as most people believe they should be.

On the other hand, your buyer's agent may have a conflict of interest. You might want to have a talk with them about that, and if you are still uncomfortable with the situation, you might want to change agents.
0 votes Thank Flag Link Sat May 17, 2008
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