Bank trying to rip us off. How unusual.?

Asked by solis93, Portland, OR Fri Oct 19, 2012

We made an offer on a home. The offer was accepted by Chase, we signed papers. Out of the blue, they came back with an amount 20k more than the original asking price. Is that legal or can I sue the pants off of them?

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Maria Gilda…, Agent, Manchester, CT
Sat Oct 20, 2012
Are you buying a short sale or bank-owned?

If it is a short sale, was it the seller who signed the papers? Then, the bank can counter.

If it is bank-owned and the bank accepted your offer, then I am not sure why would they come back with a counter.

Can you provide more details?

Better yet, consult your realtor.

0 votes
thank you for providing additional infomation. you don't have to accept the bank's counter offer. ask your realtor to provide you with comps. if your offer c is close or reasonably close to the comps, then the bank will realize eventually that what they are asking is unrealistic. you don't want to pay more than the current market value of the house. first, you will not get a mortgage if your lender sends out an appraiser and the property comes back lower than the bank's asking price. good luck. who know, you may one day get a phone call or email from your realtor notifying you that the bank accepts your initial offer.
Flag Sat Oct 20, 2012
Thank you for your kind reply. Yes, it is a short sale. It was listed at 149k. We liked it and since it was missing a dishwasher (the previous owner took it) we asked that they put a new one in. Signed the papers, we got the paperwork back saying that they accepted the terms. Then out of the blue, the listing agent said that the bank came back with "a counter offer" of $169k.

I realize it is probably "legal." But the seller in the short sale shouldn't be able to sell the house for less than he owes the bank. If it is a case of the bank wanting to make MORE profit from the same house, well.... now we know why everyone wants to regulate those institutions and the people that run them. ;)
Flag Sat Oct 20, 2012
The Stephen…, Agent, Portland, OR
Wed Nov 7, 2012
You would have to have a lawyer review the paperwork. They definitely "skew" the paperwork in the banks favor so they can do whatever they want. For some reason people continue to bank at Chase.. why is beyond me. This isn't the first story I've heard about this bank.
1 vote
Marvin Von R…, Agent, Tigard, OR
Sat Oct 20, 2012
Well, you should ask an lawyer about suing---not a real estate agent, period. If you are simnply asking about the action, they can come back with anything they want. There is no law that says anyone has to accept anything from anyone. One question is was yoiur offer full price. Also remember the bank IS NOT THE SELLER. By the way, we ASSUME its a short sale but you were not explicit.

Lynne gave one interesting reason why this could happen. There are many possible reasons but again the banks do or dont do many things WITHOUT APPARENT REASON!

This is why doing short sales is so much fun. (right---)
1 vote
Hi. Thank you for your answer. Yes, it was a short sale. We gave then the price it was listed for. The offer was accepted, etc... then the bank came back with a "counter offer" of $20k more.
Flag Sat Oct 20, 2012
Marge Bare, Agent, Portland, OR
Mon Dec 17, 2012
need more info to answer, is this a short sale where Chase is the lender, or is the property owned by Chase? you said you signed papers, were these offer agreements? If its a short sale, which I'm guessing it is, there would need to be more info but I can tell you, there's no guarantees in short sales that the terms will stay the same. This should have been explained to you when you signed. Look at your paperwork, and if its a short sale you should have signed a couple of additional documents, a short sale addendum and a short sale summary. Both documents explain the process, which states clearly that the bank will review the terms and obtain all the creditor approvals. At any time, they can revise the terms if not acceptable. That's why the terms of the short sale are not fully determined until the seller receives the actual "short sale approval" from their lender, and until then, all is open to change. again, this is a complicated process so without more info, I'm making some assumptions. But if what I've said fits your scenario, then this is extremely common and why people need to understand going in, that there are NO guarantees and the process on a short sale is very different than a standard sale transaction.
best to you
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0 votes
Tom Inglesby, Agent, Portland, OR
Sun Oct 28, 2012
The seller can sign any offer if it is a short sale and that doesn't mean anything because in the end the bank has to agree on the price and yes many times they are raising the price the seller agreed to. As the market increases so does the price. I have seen homes priced last fall for $95,000 the seller finally gets offer in March only to have buyer walk in July and the bank after the BPO or appraisal raise the price by $30,000 and then there are 3 offers on the property as the market changed in the past 12 months. If you have an agreed to price from the bank they cannot change the price but you probably had a seller agreed to price and the bank did not go along with that amount. Good luck to you. Tom Inglesby
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Lynne Tucker, Agent, Potomac, MD
Sat Oct 20, 2012
It sounds like you made an offer on a Bank-owned property (this is a property that the bank has foreclosed on). My guess is that during the title search process, one or more unpaid liens were discovered. These are most likely unpaid taxes. All banks have some sort of caveat in their contracts that allow them to cancel the contract if title problems are discovered during the title search. Your only option may be to either pay the additional money to clear the title or the contract will become void. I had a similar situation happen with some clients recently. We let the contract go, the bank took the house off the market, paid the money to clear the title, and re-listed it 4 months later. We tracked the house and were able to get it 4 months later at the price we originally offered. Good luck!
0 votes
It sounds like you had a contract with the owner of the property but the bank had to approve the contract. There was probably a contingency in the contract that said the bank had to approve it. Instead of approving the contract that you had with the seller, the bank asked for more money. In a short sale, the owner owes more money to the bank than the house is worth so the bank has the right to do this.
Flag Sun Oct 28, 2012
Thank you for your kind reply. Yes, it is a short sale. It was listed at 149k. We liked it and since it was missing a dishwasher (the previous owner took it) we asked that they put a new one in. Signed the papers, we got the paperwork back saying that they accepted the terms. Then out of the blue, the listing agent said that the bank came back with "a counter offer" of $169k.

It doesn't seem like it should be legal to renege like that. Isn't that what all of this paperwork is for? Aren't they contracts.

Sigh. Banks do this sort of thing because they can. I hope people have had enough abuse.
Flag Sat Oct 20, 2012
Terri Vellios, Agent, Campbell, CA
Fri Oct 19, 2012
You must be bidding on a short sale. The Bank can change the price when they believe that the offer is below market value.

I can't tell you if you can Sue anyone. I suggest you work with your agent and the managing broker to get a full understanding your particular situation, as we here can only speculate.

All the best to you.
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0 votes
Janet Nation,…, Agent, Baldwin, NY
Fri Oct 19, 2012
Was this a short sale? If so the answer is yes. If the listing agent priced the home excessively low and had no supporting comps or documentation to justify that price, then the bank will counter. The bank is "short" what is owed them, therefor they bank makes the ultimate decision, not the homeowner, as to what they will aceept. This is assuming you are referring to a short sale transaction.
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Thank you for the kind reply. Yes, it is a short sale. There was a comparison done on houses in the same neighborhood which sold in the last 90 days and the listing was a little bit more than the "market value." There seems to be no ethical regulation on banks - they do what they do because they can. Can't wait until they are regulated out of existence so that credit unions can replace them.

A person can dream. :)
Flag Fri Oct 19, 2012
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