Foreclosure in San Francisco>Question Details

sid8uf, Home Seller in Edina, MN

REO Agent refuses to submit offer to bank

Asked by sid8uf, Edina, MN Thu Dec 27, 2012

Guys,

Looking for some advise here.

I am really interested in a REO property. On 25th Dec 2012, the price was dropped and was well within what I was comfortable with and pe-approved for. So, I submitted an offer at "FULL ASKING PRICE".

The listing agent replied within a few hrs (on Christmas Day, when obviously the bank was not working) saying, "Please ask your buyer not to waste time, his offer is rejected".

My realtor and I both wrote to the listing agent to find the reason but he did not reply or take calls.

1. Is the Listing agent "LEGALLY" required to submit all offers to the bank (especially at asking price) in California State? Is so, could you point to me to the correct legal article or rule that says this?

2. What can I do ? I called the Bank and they would not let me talk to the asset manager and said that the listing agent was the only contact.

Thanks much for your advice.

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Answers

13
1. Is the Listing agent "LEGALLY" required to submit all offers to the bank (especially at asking price) in California State?

YES

Is so, could you point to me to the correct legal article or rule that says this?

I can't, but she can: http://activerain.com/blogsview/1813272/in-california-all-of…

2. What can I do ?
You can A) female dog & moan - makes you feel a little better, B) report their butt - if enough people take the time to do it with any luck they might just lose their license, C) sue, D) do what most people do which is sad - move on to the next one, E) be persistent and sneaky and figure out a way to get to the asset manager - (and perhaps their boss) which may or may not help any. Theoretically banks are supposed to be liquidating their non-performing assets - if the boss finds out the asset manager is doing a crappy job, they just might get a talking to - enough talks and maybe somebody will lose their job. Squeaky wheel gets the grease, make a big enough stink and maybe you'll get some satisfaction - though you probably won't get the property no matter what you do - with the exception of suing and then you take your chances. Is it worth it?

And surprise surprise, I'm not an agent. How do you know? Because I answered your question. I'm tired of stupid lazy agents that don't know their own job or obligations which seems to be pretty much 98% of them - present company excepted of course ;)
0 votes Thank Flag Link Mon Apr 8, 2013
Sid:

The Seller needs to accept your offer, before it is submitted to the bank. Perhaps the Seller has an offer that is better then yours, i.e. all cash, over the listing price, etc.
0 votes Thank Flag Link Fri Dec 28, 2012
As the title says it is a REO and bank owned property not a regular sale or short sale.
Flag Fri Dec 28, 2012
Sorry to hear about the unprofessional response from the listing agent. It's difficult to assess what's going on here. I am wondering whether your realtor had a conversation with the listing agent to assess the situation and circumstances and what other offers were in hand.

The listing agent has a fiduciary duty to the seller (the bank) and generally is the only point of communication for your agent and you. Some banks intruct their agent to only send on offers that meet their specific requirements and therefore in those cases the bank will see those offers. The others then won't be submitted.
0 votes Thank Flag Link Fri Dec 28, 2012
Something seems to be off here. Has your agent checked his track record, history of any complaints, his transaction trends...? How many REO listings does he currently have? How many has he closed as a listing agent?

It seems you need more information from this listing agent to know what is really going on. If in fact he is holding an open house this Saturday, you can try meeting him in person there with your agent present to get to the bottom of it all.
0 votes Thank Flag Link Fri Dec 28, 2012
The response you received from the listing agent was certainly unpleasant and unprofessional. As Realtors, we find listing agents like these to be just as disagreeable as you find them. Unfortunately, they're an unavoidable part of the profession, besmirching all of us.

As for your questions:
1) It depends. In California, the seller can direct the listing agent to present only certain offers based on the seller's qualifications. These conditions can extend beyond the offer price and deposit. So, if such a condition was provided by the seller, then this listing agent has executed his fiduciary duties, no matter how unpleasantly. But, if there is no such condition (which only the seller and listing agent can know), then you may have a case. Still, it's nearly impossible for you to confirm and the deal will likely be gone before you can take action.

2) There's not much you can do. The seller is making an offer to sell and before any contract is entered, the seller is not obligated to sell. The seller can choose to use any agent just like you can. If you really like the property, you can try to enter another offer, possibly with another agent.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Dec 28, 2012
I appreciate everyone's comments.
I have to make one observation though. Everyone who replied was a realtor and no one answered my first question.
Most tried point to why my offer might have been weak without the data (just fyi- it was as strong as it can get > 800 credit, same bank pre-approval, significant money down, fantastic & consistent W-2 wage for 8 years, willingness to go higher if indicated ......).

No one remarked on the crass language and lack of etiquette of the listing agent's note and approach to service.
0 votes Thank Flag Link Thu Dec 27, 2012
The one thing you did not mention is what type of financing you will be using. Many REO properties will not qualify for certain types of financing. I am currently in escorw on a REO with a buyer using conventional financing the the buyer's lender is still asking for certain things to be fixed before funding. We are trying to get this resolved to eveyone's satisfaction. This may be the reason your offer was rejected.
Good luck,
0 votes Thank Flag Link Thu Dec 27, 2012
Conventional loan. The home is barely 3 years old.
Flag Thu Dec 27, 2012
Some banks don't allow this but have you asked the listing agent if he is also representing a buyer with an offer on the listing?
0 votes Thank Flag Link Thu Dec 27, 2012
Something seems to be off here. Has your agent checked his track record, history of any complaints, his transaction trends...?
How many REO listings does he currently have? How many has he closed as a listing agent?
If you and your agent feel he is not being honest, the first place to go is the MLS board for help and then the DRE.
Flag Thu Dec 27, 2012
Hi Kashi, I would certainly do that if he would respond to emails or calls. He is neither responding to me or my realtor.
Flag Thu Dec 27, 2012
Chances are that they listing agent had stronger offers than yours. I would take that as a signal to strengthen my offer., That means 1) bidding higher 2) Offering more money down....it doesn't sound like yours was a strong down payment.

It is very common for REOs to sell over list price.

Many agents, when working with banks, will send top offers to the bank. They may have received dozens of offers so they narrow it down.

You can perhaps report this agent to the local MLS board, but I suspect they are operating within the guidelines of their REO contract with the bank.

My honest feeling is that there's nothing else you can do here.
0 votes Thank Flag Link Thu Dec 27, 2012
Hi Cindy. Thanks. What you say is possible and I would be ok with that and possibly send a higher offer. However, the guy has an open house this saturday which means he is looking to accept more offers. If thats the case, why not just say so and perhaps, I would increase my bid. Why say, "don't waste your time, offer is rejected"?
Flag Thu Dec 27, 2012
Thanks Shanna. The agent - broker is a one man team unfortunately.
0 votes Thank Flag Link Thu Dec 27, 2012
Hi sid8uf,

I would have your Realtor contact the listing Broker (not the agent - unless the agent is also the Broker).

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Dec 27, 2012
Thanks. The offer was in writing with the pre qual letter and more than 3% of the asking price as earnest money. Covered all bases.
0 votes Thank Flag Link Thu Dec 27, 2012
First thing is the banks do not sell their ownhomes, they use asset management companiies to sell and manage them. No all offers have to be submitted to the bank until the time the bank signs one accepting it. The first key is if your offer was in writing, was accompanied by a deposit and a prequailfication letter. Oral offers are not considered a legal offer. Your next step is to contact the state real estate commission to quote any exact CA laws. Then you can contact the agents managing broker for some answers.
0 votes Thank Flag Link Thu Dec 27, 2012
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