can the bank go back on an approval for a sale?

Asked by Jen, 48081 Fri Jan 30, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

15
Jen, Home Buyer, 48081
Sat Jan 31, 2009
It is their agent. Our agent told us that they are going to foreclose in 6 weeks. Hopefully they want to accept our offer before that happens.
1 vote
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
You are very welcome Jen. Let us know how it goes.
0 votes
Jen, Home Buyer, 48081
Sat Jan 31, 2009
We were told that we would hear back in about 10 days. Hopefully sooner, I hate waiting. Maureen thanks for sharing your expertise with me.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
Yes, the bank can do whatever it wants. The bank is not obligated to accept the asking price. However, since another buyer walked away, I would be fairly certain you will get a quick response and the bank will not counter higher.
0 votes
Jen, Home Buyer, 48081
Sat Jan 31, 2009
I am not sure. That is good news if that's the case. We were told that the prevous offer was accepted but the buyers walked away. We offered asking can the bank counter with a higher number?
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
When you say foreclose, do you mean that the sheriff's sale is scheduled for 6 weeks? If it is, that will not have a negative impact on your ability to purchase.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
Is the agent your agent or the sellers agent?
0 votes
Jen, Home Buyer, 48081
Sat Jan 31, 2009
I am going to call the agent today. Hopefully they know what they are doing. We are first time homebuyers so everything is new to us.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
Jen,

The asking price has nothing to do with what the bank will accept unless it is a pre-approved short sale. Most are not pre-approved.

Your agent can do a market analysis for you to let you know what the market value of the home is.
Web Reference:  http://miOaklandCounty.com
0 votes
smith3gary, Agent, White Lake, MI
Sat Jan 31, 2009
Jen,

I suggest speaking with your agent (hopefully a buyers agent) about your offer. Short sales frequently take months while the bank decides (keep in mind, they may try to keep their books balanced by allowing only so many losses during a quarter)

If, the sellers signed and completed the offer, then you should only be waiting for this contingency to be accepted, but only your agent can explain this to you completely.
Web Reference:  http://mi-living.com
0 votes
Jen, Home Buyer, 48081
Fri Jan 30, 2009
Thanks for all the feedback. We do not know what the current market value is, but we offered the asking price. Will that make our chance any better?
0 votes
John Gitre, Agent, Canton, OH
Fri Jan 30, 2009
Jen, until you get signed documents back from the bank, they can and most likely will accept an offer that is better than yours. In a short sale or forclosure deal the banks want to maximize the return on their investment. With so many homes avaible, unless this home is THE very best, I would consider others.
Good luck.
0 votes
Jen, Home Buyer, 48081
Fri Jan 30, 2009
We were approved at the bank, and are waiting to find out if our offer is going to be accepted. It is a short sale and I am hearing a lot of horror stories. Can our offer be accepted and then rejected if somebody else offers more?
0 votes
Frances Flynn…, , State College, PA
Fri Jan 30, 2009
I am not sure if you are asking about an approval for the sale of a bank property, or a loan approval for a buyer.

I have seen banks change course in the middle and even near the end of transactions of bank owned properties. The language in their contract clauses usually gives them a great deal of latitude about contract performance. The ineptidude of banks and their dismal record of follow-through is a sad chapter in American real estate.

The loan approval process is tricky right now with lenders verifying employment multiple times and issuing "conditional" loan approvals that give them lots of leeway to change their minds about lending money to a buyer.
0 votes
Maureen Fran…, Agent, Birmingham, MI
Fri Jan 30, 2009
Is the approval from the bank in writing?

I have never had a bank go back on an approval, but can you tell us the circumstances?
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more