Foreclosure in Denton>Question Details

Anniek, Both Buyer and Seller in Fenton, MO

Can you make a contingency offer on a foreclosure?

Asked by Anniek, Fenton, MO Thu Jan 14, 2010

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There are many types of contingencies.. It really depends on what you are trying to make it contingent on... If it that you want it contingent on your home selling and it is not already under contract with a close date within 30 days, then no.. the bank will not accept that.. However there are many contingentcies a bank will accept.. for example, you can make it contingent on a home inspection, a clear termite/moisture letter, and many other items... Each bank is different but in my 20 years of working the REO market, it is best to make the offer like you want it and see what the bank is willing to do from there. The only ones they generally turn down outright are the ones contingent on another home selling not under contract... Hope that helps..
1 vote Thank Flag Link Fri Jan 15, 2010
Rarely.....but it depends on the situation. I've seen it go both ways. The banks I have worked with might consider it if you have a contract in hand from your buyer and can provide all the documentation of the sale.
Sales contract, preapproval from your buyer, etc.

If it is just a straight contingency to sell your home and it is not on the market or you don't have a buyer in hand, then this is much more difficult for a bank to consider. If you have strong non-refundable earnest money or something you can offer them again they might consider.
Here is a link to all the foreclosures I currently see in Denton if for some reason the one you have your eye on doesn't work out.…
If we can help you in any way, just let us know.

Bruce Lynn
Keller Williams Realty
Web Reference:
0 votes Thank Flag Link Thu May 20, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
Absolutely...if you find the right bank, we just found a foreclosure in a historic district, and the bank absolutely is doing contingent on our home selling, and it is NOT on the market yet....the house has been empty for 3 years and is deteriorating, has been broken into several times, the bank doesnt want to deal with it anymore, and they know helping us to get in their will be less headache for them, so do NOT give up, we didnt!!!
0 votes Thank Flag Link Thu May 20, 2010
If you already have a contract on your current home, the bank may accept the offer. It's completely at their discretion. In this market, it's 'never say never'.

In my experience, the more local the bank, the more likely the affirmative answer. And, if you are willing to do the home purchase using their bank for your loan, then they have the added benefit of working with you.

It doesn't hurt to ask. The worst they will say is 'no'.
Have a blessed day.
0 votes Thank Flag Link Sun Jan 17, 2010
When the bank accepts the offer they are estimatiing their loss thus expecting the accepted offer to close. History does not produce favarable results when accepting offers subject to selling another property. This type of offer is a agreement to agree not really a deal anyone can count on. If the buyer does not sell the property there is no deal. If it takes a long time to sell the bank incures more expenses and carrying costs thus making a decesion where they do not know there loss.

Why would a bank want to do this? They rather have a lower offer than a contegent offer, this will fix their loss.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Fri Jan 15, 2010
Very rarely will a contingency be accepted. Every deal is different and all you can do is do what you can do. This will be the exception not the rule....It could depend on how strong your offer is, how strong the contract on your house is, etc. The more information you can provide with your offer the better. For example if you do not have a contract on your house, I would be surprised if a bank would take the contingency. However if you are contracted and perhaps using that bank as the lender on the new property and the buyer is using them for your property, perhaps they can feel comfortable that the deal will go through. If you are only telling them that the new deal can be completed when your current home closes.

Good luck.
Web Reference:
0 votes Thank Flag Link Fri Jan 15, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
It seems everyone has answered your question. 99% of the banks will not accept a contingency. I did however one deal last year and the bank was a very small one and they did accept the contingency. My buyer's house was under contract though but hadn't closed yet. It all worked out and closed within 30 days.

If it's one of the big dogs banks, they just don't accept them.

Web Reference:
0 votes Thank Flag Link Fri Jan 15, 2010
Banks will not accept a contingency offer on a foreclosure and most of the time you cannot fake them out on it. I had a couple who were under contract on their home and wanted to put in a cash offer on the foreclosure. But since their house had not closed yet, they would not accept the offer and went onto the next group. Best bet is to sell your first one if you are looking at foreclosures and then possibly live temporary for a month or so and put in the offer on the foreclosure home.

Now if you can afford both houses, you can put in an offer but you need to be able to qualify for the loan even owning the other house. I sell a lot of foreclosures in Denton. Call me if you have any more questions. 214-682-4135
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0 votes Thank Flag Link Thu Jan 14, 2010

Contingent on what?
On you getting financing. Yes
On you doing inspections. Yes
On you selling an existing home. NO

The bottom line is you won't know until you ask. Find a realtor and write an offer.

Fran and Mark Redding
Prudential Fox Roach
1010 Stony Hill Road
215-321-3307 DIRECT
Web Reference:
0 votes Thank Flag Link Thu Jan 14, 2010
All the banks we work for will NOT accept a contingency offer EVER. Too risky, and could keep the home in escrow way too long, costly the bank way too much in holding costs.
0 votes Thank Flag Link Thu Jan 14, 2010
Dear Anniek,

The banks want non-contingent offers....In my experience, you submitt a non-contingent offer to the bank, and they will consider the first sales contract submitted. They usually will accept or decline the written offer, and may take back up offers to consider if the first offer does not suit them. It's a one at a time contract review by the bank. Keep in mind, the banks are stuck with these properties, and they want to sell them as quickly as possible, with no strings attached.

Debbie Bathen
RE/MAX Atlantic
Web Reference:
0 votes Thank Flag Link Thu Jan 14, 2010
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