Are there any laws regulating the bidding process with the banks?

Asked by Eric H., Atlanta, GA Wed Nov 19, 2008

I submitetd an offer to a Bank's agent a few days ago, he advised us that it was too low and doubted if the bank would take it, we tell him to submit it anyway. Today we call to check up on it, and he still hasn't submitted it yet, stating that the fax was too dark. All he had to do was call and ask us to re-fax it to him. Clearly, he didn't plan on sending in this bid. Are there any laws regulating these types of transactions?

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Lisa Allen,…, Agent, Roswell, GA
Wed Nov 19, 2008
BEST ANSWER
Hi Eric,

I am a Foreclosure Specialist working with Buyers only. Sadly, this kind of thing happens all the time. I've submitted several offers that have been "held" for one reason or another. Many of the listing agents that list foreclosed properties have many homes on their plate and some offers simply fall through the cracks. As a Buyer's Agent specializing in this area I am constantly calling the listing agent (sometimes 3 times a day) to make sure they are on top of their game. Many are too busy with the amount of properties and offers that they can get bogged down.

Don't get too discouraged as maybe this agent simply forgot to call your agent. I would re-send your offer, have your agent to call to make sure he received it and get some type of response from him as to the day and time it was submitted. Most offers are submitted via email or through the bank's REO management company website.

Foreclosures are a totally different ball game and you want to make sure that your agent is always a step ahead. You also want to make sure that when you receive the bank addendums (if you haven't already) that your agent reads them VERY CAREFULLY!! These addendums to the contract can override anything that is in the original GAR contract.

There are no laws regulating this type of transaction so make sure that your agent is diligent and fights for YOU!!

Please contact me with any questions or concerns,

Lisa Allen, REALTOR
404-925-8261
Prudential Georgia Realty
LisasListings@comcast.net
http://www.LisasHomeListings.com
0 votes
Hank Miller, Agent, Alpharetta, GA
Thu Nov 20, 2008
Whoa whoa whoa - NEVER, EVER use the listing agent on a REO/Foreclosure deal. If you do that, you will not have "client" level service - that agent works for the seller, not you and they are legally obligated to represent their best interest.

Get an experienced buyers agent that will be persistent. Understand though - and it seems that you do - that many of these deals fall apart and even under the best of circumstances they are exasperating. If you need a hardheaded agent, ring me up! Good hunting -

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
1 vote
Hank Miller, Agent, Alpharetta, GA
Wed Nov 19, 2008
Hi Eric -

The answers are on the button - he has to submit that offer to the seller. Now, whether or not he does you might not know. These distressed properties are miserable to deal with and often at days' end the "bargain" isn't all you think. Unless you're in an area that no one wants to be, I've not seen any real deals when all things are considered.

Get a stout buyers agent, be patient and strap in as working these waters will be a challenge. Hang in there -

Hank
1 vote
Lisa Allen,…, Agent, Roswell, GA
Thu Nov 20, 2008
Hi Eric,

Most foreclosure agents only work for the banks and usually tell you upfront to go out and get an experienced Buyer's Agent. Foreclosure Listing Agents are extremely busy with listings and they do not have much time for Buyer's. Hank is right, you want an agent to represent YOU and not the seller's interests. Get yourself an experienced agent that will stay on top of the listing agent. You deserve the best as buying a home is one of the largest investments you will make!!

Call me and I would be glad to counsel you on this process,

Lisa Allen, REALTOR
404-925-8261
LisasListings@comcast.net
http://www.LisasHomeListings.com
0 votes
Eric H., Home Buyer, Atlanta, GA
Thu Nov 20, 2008
Thank you so much everyone for your informative answers. I think I may be in a situation where my agent isn't staying on top of these people like she should. I understand these foreclosures/short sales are long cumbersome processes. I talked to my agent yesterday and it seems that this is only her 7th short-sale. If this offer falls through I think I may be going with another more experienced agent. Now, this brings me to another question; should I got with the listing agent of a property that I want to make an offer on as my agent?
0 votes
Dave Caplin, Agent, Duluth, GA
Wed Nov 19, 2008
Eric,

There is nothing in the law about this, unless your work with a qualified REALTOR. They must submit ALL offers to the seller.
I am a REALTOR that has relationships with the asset managers at over a dozen banks/lending institutions in the southeast. I have experience working with these "asset managers" and know how to get in front of those that are making the "sell" decisions. Call me if you are not already represented, and I will try to get it done!!
Dave @ 800-646-1929 and leave a message
Web Reference:  http://yourmonopolycoach.com
0 votes
laura.dodd, , Atlanta, GA
Wed Nov 19, 2008
Hi Eric:
I have had agents stall when submitting an offer on a foreclosure which is getting a lot of traffic esp. if the offer is really low. They are hoping, of couse, to get a higher offer to present. Repeated phone calls and emails from your agent should solve this problem and get your offer submitted unless they had a minimum bid which they should have told you right away. Most busy foreclosure agents would prefer to deal with an agent directly because it makes their job easier so that could be another reason for stalling if your offer was not submitted through an agent. I am not saying it is right but it does happen. I'm sorry that you have had this bad experience and I hope it works out for you.
0 votes
Joshua Jarvis, Agent, Duluth, GA
Wed Nov 19, 2008
Eric,

Sadly, there is no law whatsoever. The requirement to practice real estate are far too low. Agents that are dealing with banks may or may not have any sort of system.

HOWEVER!

As Realtors we are SUPPOSED to submit EVERY offer to the Seller. I would talk to your agent about the process. If you don't have an agent, then you're already behind in the game.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Nov 19, 2008
There are no laws on what the banks will or will not consider but there is ethics through the borad of realtors and teh state real estate commission that state all offers, no matter what have to be presented to the seller. He is violating these at worst. As far as what a bank will or will not take. Usually after a listing agent gets an offer or two, submits them and starts seeing the counter offers from teh bank , they have an idea of what the bank will or will not take. They can not tell you the previous offers but could say you need to bring you offer up to be considered, your reply should be what prices have they rejected. he should be able to answer but will he??? Either way you can avoid this hastle by getting a buyer agent who can represent you and have the experience to quote laws and rules to get this listing agent moving.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Steven Angel…, Agent, Pembroke Pines, FL
Wed Nov 19, 2008
Hi Eric,

If I were you I would try and find out if the agent is working directly with the bank or an asset management company. Most likely it is the latter. If possible try and research which asset management company is handling this particular property and advise them you have presented an offer to their lising agent and you want to make sure it was submitted. All Realtors are obligated to present all offers. You could try and Google the listing agents name and company to try and find this info. Hope this helps!
0 votes
Tori Lawson,…, , Fayetteville, GA
Wed Nov 19, 2008
Eric,
I hope you are working with an agent to represent your best interest? It would be beneficial for you to have representation, it costs you nothing.
Please advise if I can be of further assistance.

Sincerely,
Tori Lawson
REALTOR
Prudential Georgia Realty
Web Reference:  http://www.torilawson.com
0 votes
Jolie Abreu, Agent, Boca Raton, FL
Wed Nov 19, 2008
It is certainly unethical of the listing agent to withhold an offer. All offers must be presented to the seller, unless the seller specifically (in writing) requests not to receive any offer below a certain price. That usually occurs in an auction where there is a minimum reserve price.

Are you working with a buyer's agent? This agent would work on your behalf to make sure the offer is submitted, as well as help with negotiations and the closing process.

Hope this helps,

Jolie Abreu
Keller Williams Realty Consultants
(678) 894-4409
jolie@helpinghomes.net
Web Reference:  http://www.helpinghomes.net
0 votes
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