A friend made an offer on a foreclosure. The listing realtor had numerous errors in the listing and an

Asked by Janie, Virginia Thu Mar 6, 2008

instruction sheet for contract submissions that had the name of another bank. When the offer was submitted, the realtor automatically rejected the offer. My friend was approved (not pre-approved), 3% down in earnest $$, no contingencies, closing in less than 30 days; the offer was $30K less than asking with closing cost assistance. He, at least, expected a counter. We know the agent didn't submit the contract to the bank. Can the agent do that?

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Danilo Bogda…, Agent, Reston, VA
Fri Mar 7, 2008
45 minutes seems a bit fast. Perhaps the offer was not completed correctly and that's why. You mentioned that the agent's paperwork had a different seller listed than who it was in actuallity. That may have been why. Neverthless, it seems a bit fast for a repsonse.

Have you asked the agent why it was rejected?
0 votes
Deborah Madey, Agent, Brick, NJ
Thu Mar 6, 2008
Janie,
Agents are obligated to sumbit offers in most states. Since I am not a broker in Virginia, I cannot speak to the rules or laws there.

It is possible that a seller, bank, or otherwise, have provided instructions pertaining to minimum criteria and a standard authorization to reject any offers that fail to meet that benchmark. In such cases, the Realtor can respond quickly.
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Tamara Inzun…, Agent, Alexandria, VA
Thu Mar 6, 2008
If your friend 'expected' a counter that leads me to believe that it wasn't your friend's best offer? Even though it' s a buyers market, banks are not desperate to sell. No matter who owns the home, if it's something that you really like, give it your best offer. There is no obligation to make a counteroffer in any case or any type of sell. Your friend can still submit another offer. Not to say that your friends offer was ridiculous, but from my experience with foreclosures, banks will definitely not jump on every offer.
Web Reference:  http://www.MovingToNova.com
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FrankyRealty, , Arlington, VA
Thu Mar 6, 2008
Hey Janie,
Some banks have an immediate online offer review system. That might have been the case here.
Frank
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Julie Hall, Agent, Kirkland, WA
Thu Mar 6, 2008
I am in Washington State, but here it is our duty to submit all offers received. So, the Realtor was supposed to submit your friend's offer to the bank so that the bank could reject, counter or accept the offer. Keep in mind that seller's do not need to actually respond if they don't want to (although it's always nice if they do). The listing should not have errors, that is a problem. I would talk with the Realtor's Managing Broker and at least get your offer submitted - it seemed appealing overall, although perhaps the bank cannot take $30k less depending on their net loss. Good luck! Sounds like an interesting opportunity.
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Janie, , Virginia
Thu Mar 6, 2008
Please accept my apologies; I should have been clearer. The offer was rejected within 45 minutes of submission. I don't think he got an answer from GMAC that quickly. Or maybe they are responding much faster than all the rest of the banks?
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Danilo Bogda…, Agent, Reston, VA
Thu Mar 6, 2008
An agent/broker has to submit all offers to their seller client by law. If your offer has incorrect seller information, that's one thing. If it did not and if you can prove that the agent did not submit the offer, that's another thing.

If you're basing your opinion about them not submitting your offer solely on the fact that it was rejected, you may be wasting your time. Banks reject offers all the time without a counter and without reason. All sellers have the right to do what they want - accept, counter or reject without reason.

If your friend really wants the property, why don't they just rewrite the offer with the right sellers' name and resubmit it? If your friend doesn't want it enough to overlook their dislike of the listing agent, then move on.
Web Reference:  http://www.LoudounStats.com
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