"I put an offer on a bank owned house, then the bank sold the house to another buyer with price less than my offer by 29,000 $ is it

Asked by Mhafez1971, Sacramento, CA Sat Dec 14, 2013

legal?"

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12
Mike Schubert, Agent, Sacramento, CA
Sat Dec 14, 2013
In all likelihood, YES. Just like any owner they can sell their property to whomever they wish at whatever price they wish. The highest priced offer is not always the best offer to accept. Don't sweat it, move on and you'll find the right home.
4 votes
Kylee Roe, Agent, Sacramento, CA
Sat Dec 14, 2013
Any seller is permitted to accept any offer. It's up to the seller to decide which offer is the best offer to accept. Hopefully your Realtor is guiding you to make the best offer on these bank owned properties. It's not always about price.
2 votes
Debra (Debbi…, Agent, Livingston, NJ
Sat Dec 14, 2013
The banks can do whatever they want, and it doesn't always make sense!

Plus - just "putting in an offer" doesn't mean you have a signed contract or agreement.
2 votes
Christopher…, Agent, Folsom, CA
Sat Dec 14, 2013
Yes-Based on the limited information provided. If the offer you submitted was not accepted yet and you were not in contract, they can sell to who or for whatever they want. They are under no obligation to sell to the 1st offer or the highest. There are many factors in negotiating with the banks on these types of transactions, and I can site many times the bank accepted lower offers. They can also back out of the offer if the timelines are not met. There is always the possibility the other offer was already accepted and your offer came in late. Hard to say what happened. It is recommended to use someone who really knows and is trained to handle transactions for that side of the business. Trust me, it does make a difference. There are no guarantees, but if you want the best chance of landing the deal, you need someone who knows the ropes.

If you would like to use a qualified agent to help avoid these pitfalls and help increase your chances of success on your next offer, let me know. Save time and frustration and let me handle your property searches and / or transactions.

You can find me on cmiller.golyon.com. Let me know if you would like to meet to discuss your options.

Great luck.
1 vote
JR Thrasher, Agent, San Diego, CA
Wed Dec 18, 2013
Sure, why not? there are many considerations in an offer other than price.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
Jaime Becker, Agent, Sacramento, CA
Tue Dec 17, 2013
The seller has the right to choose any offer they wish. Sometimes there are more details than just price to an offer. Also there are many details and steps along the way in the process that could have an impact on the ultimate selling price.

Such as inspections and appraisal. Writing too high of an offer doesn't necessarily mean it's a good offer.
0 votes
, ,
Tue Dec 17, 2013
Maybe it was less, maybe it wasn’t. How do you know the deal wasn’t tied to something else? Years ago one of my clients got a multi-million dollar first mortgage on a property because they bought some of the banks’ bad paper.

Another possibility, everything is relative, $29,000 on a $29,000,000 offer isn’t a very big spread. If your proof of funds was a prequalification letter that stated the lender hasn’t reviewed your support documents and the other buyer wrote a certified check for the full amount, which would you prefer?

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference:  http://jamessimms.com/
0 votes
Jason Walter, Agent, Sacramento, CA
Tue Dec 17, 2013
Yes, that is perfectly legal unfortunately. It's completely up to the bank on which offer they want to choose. Perhaps the offer that was selected had better terms such as cash only or no contingencies. Keep trying! Inventory is much higher than last year with fewer investors purchasing homes which makes it easier for everyone else to buy.
0 votes
Ozell Smith, Agent, Sacramento, CA
Sun Dec 15, 2013
Banks have the option of accepting any offer they want. Just because you put in an offer doesn't mean you will get that particular property. That property may have 10 plus offers on it and they will determine which offer is the best for them. keep putting in offers and don,t give up.
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Sun Dec 15, 2013
You don't specify if your offer was for cash, or had required a loan. You also don't specify other items that a seller may consider for terms of your offer.

The seller will choose the best offer for them which would include price but also terms. Assuming there was no funny business with their listing agent influencing the selection, the seller may also select one that is more likely to close with the terms stated. For example, if your offer was with a loan, and too high, then they are very aware that it will not appraise. Guaranteeing the offer price despite the appraised value is one way to allay their fears but review your offer for where there might have left questions in the seller's mind as to its likelihood of closing as it was offered.

My guess is your offer was not believable. If you're confident that your realtor submitted the offer and had control of the process (it was written correctly and submitted as per instructions), so that it must have been funny business on the part of the seller's side, you can always ask for an inquiry with the BRE...but I'm not sure what it will buy you at this stage. They won't reverse the sale to the other buyer. I'm sorry for your disappointment but hopefully there was some lesson here somewhere beyond suspecting hanky panky. Have you asked the listing agent for how the selection was made, and why not yours?
0 votes
Annette Law…, Agent, Palm Harbor, FL
Sun Dec 15, 2013
Is it LEGAL?
You need to consult an attorney regarding LEGAL questions.
I am not an attorney.
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However, your question is related to real estate and that can be responsed to by real estate professionals. As others have noted, the bank can do what ever they want. They do not have to explain their decision. They do not have to allow you a do-over. They are not required to show you what happening behind the curtain. Buying bank owned homes is not for everyone. If you are a person looking for a home to live in, you need to take the advise of your agent. If you want to win you need to be able to decode the polite words...."We can give your offer a try..." is PC for "Are you deliberately NOT listening to what is being said about making your offer competitive?"
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If this is the path you want to pursue (you may be chasing vapors) then you need to get your offer trimmed down to fighting weight and go in fast and strong and get it in writing! This only gets to you first base. (you may or may not receive the encourage to submit your "Highest and best' offer. Sorry, not do-overs.
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The second pile of documents will give you the opportunity to hold the bank harmless regardless of the outcome including them changing their mind or the house falling down or anything in between.
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Buying foreclosures is not for everyone.
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The second pile of documents give you permission to start spending money as part of your discovery exercise. In additions you will be required to sign documents swearing,(you and EVERYONE engaged in the transaction) to things you have no knowledge of under penalty of perjury and or committing bank fraud.
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Buying foreclosures is not for everyone.
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Then you either get relegated to the outer darkness where no information escapes for months or you get the "close in 14 days notification." And when you jump as high as they require, they come back with, "Just kidding, we've lost document pile #1. Please resubmit."
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If you truly believe foreclosure represant value to you, it is very important your consultant is connected and knowledgeable regarding foreclosures and provide you prudent guidance to which you RESPOND. Your failure to respond properly results in "We can give your offer a try."
0 votes
Trevolyn Hai…, Agent, Highland, CA
Sun Dec 15, 2013
Any seller can choose whatever offer best suits their needs so an offer with better terms could trump a higher bid.

Banks especially want things easy. They do not want to pay for costs, repairs, warranties, reports, etc. They really like quick cash closings. Using FHA loans (or assistance type loans like the various city and county programs) can also make it harder to get an offer accepted due to all the extra requirements & stricter lending guidelines.
0 votes
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