We bought an REO a few months ago and the addendum stated that the bank could revoke it at any time prior to close of escrow. The bank did have a back up offer come in $20K higher than our agreed upon price, so we were worried that they would decide to take the back up over our signed offer. They followed through on the agreement with us and I think it's because of bird in the hand.... we scheduled the inspection at the earliest date possible, where as the back up offer could go ahead and change their mind and put the bank right back where they were.... trying to unload a non performing asset that is losing value by the minute.
The offer was verbally accepted by the bank. The bank sent over all of the necessary documents to sign which I did. When I signed the documents I also had a $10,000 deposit which was submitted. The agent I was working with assured me that the final documents were being signed by WAMU and would be back shortly. Today I received a call from the agent saying that the bank had decided to put the property back on the market and accept offers for another week. I'm trying to understand what happened here? This was an all cash deal with a 15 day escrow, all contingencies waived.
Have you signed the papers that the bank sent through your agent? Have you opened escrow? If you did, it will be very tough for the bank to back out.
The reason I'm asking if they can pull is because I'm worried that the bank may accept a higher offer. I've read that with REO properties even if an offer has been accepted they can go for something higher.
Usually not. The bank usually performs if you did your due diligence. especially the requirement of a cashier's check. Please ask your agent why the bank will back out if they have already accepted?? Hmmm, I wonder.