bank renegs on 'accepted' offer

Asked by paul, Brooklyn, NY Wed Feb 6, 2013

i was just notified yesterday that the bank who owns a distressed home i have been trying to purchase over the last 3 months has reneged on the last offer we had made, an offer the bank's RE agent verbally told us had been accepted all the way back in November of last year. the agent claims he was trying to get the 'written' acceptance from the bank when they apparently informed him they were no longer accepting the offer and then set a new asking price $14,000 higher.

my question is, without that written authorization of acceptance of what we were told was an acceptable purchase price, is there any recourse with the bank?

they've jerked us around (my opinion) on a couple previous occasions during negotiations already so i am in no mood to give them one dime more for this absolute 'fixer-upper' i was hoping to flip.

any advice greatly appreciated!

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Steve Kazoleas’ answer
Steve Kazole…, Agent, New York, NY
Wed Feb 6, 2013
Unfortunately there isn't any legal way for you to receive any restitution for your time and troubles, unless you were undercontract. My only advice is for you to request for a 3 way conference call between the broker, bank, and yourself. If that doesn't work call them directly. To be honest on a REO property banks usually give you 7-10 days to sign a contract after your offer has been accepted. If no contract had been sent out then the question you should be asking is why haven't I received a contract?
2 votes
Mitchell Fel…, Agent, Brooklyn, NY
Wed Feb 6, 2013
Dear Paul:

The process is very convoluted and there is lots of red tape at the banks. They can change their stance at any time as long as there is no fully executed contract of sale. Once you have a fully executed contract of sale, there is no turning back for either party. Prior to having a fully executed contract of sale, all bets are off. As en example, if you turned around tomorrow and decided you didn't want to purchase the house, you can simply change your mind. Often times this happens with buyers prior to the contract and in the end, the seller has no recourse against the buyer. In the same fashion, without a contract, you have no recourse with the bank.

If it has become too problematic or stressful, you always have the option of forgetting about the deal. If you are or have been in contract, then this answer would be much different. If that is the case please contact me direct to discuss it further. I hope this answers your question, feel free to contact me direct.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
2 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Feb 6, 2013
If you are not in contract consider walking away...
1 vote
paul, Home Buyer, Brooklyn, NY
Wed Feb 6, 2013
awesome, that was the info i was looking for. not the info i WANTED of course but the answers i was looking for, thanks so much for taking the time ;-p

there is not signed contract for sale yet. if they wait too much longer to sell at all the mold and rats will finish taking it down anyway!
1 vote
If it does not work out and you need to find another property, I would love the opportunity to help you find a replacement. Feel free to contact me any time. Good luck!
Flag Wed Feb 6, 2013
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Wed Feb 6, 2013
Hi Paul,

Did you sign a Contract of Sale to purchase the home at that price? Because, if you did not, I don't see you have much, if any, recourse. Offers are not binding in New York State for real property transactions; only a fully-executed contract of sale is binding on all parties.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

If you thought my answer was helpful, please give me a "Thumbs Up." Thanks!
1 vote
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