Some underhand stuff going on with bank and realtor... (bank owned, appointed) - Fort Lauderdale area - Florida (FL) -Broward County - City-Data Forum

mikez300 · 08-10-2009, 04:14 PM

I submitted an offer on a bank owned condo (foreclosure) for full price. Coincidentally, I am also approved by this same bank for a mortgage, and I have great credit (750's FICO). I was then instructed by the listing agent to submit a 2nd highest and best offer due to multiple offers received on this property. So I offered an additional $8,000 above asking price. By the way, I am not asking for any seller concessions.

I was then told a week later that the bank accepted another offer (assuming that it was higher than mine). I just found out today through my own research that it was sold to a cash buyer for $2,000 below my 2nd offer.

I have contacted my realtor who will be contacting the listing agent to see exactly why this happened. Selling for a lower price than mine certainly does NOT constitute a 2nd highest and best offer, so I am thinking there is some underhand stuff going on. If this bank wanted a cash offer, they should have said that in the MLS listing, but this was not the case.

I look forward to exposing this listing agent and the bank for whatever they are doing. This is a real slap in the face.

Has anyone else had this happen to them? What is your opinion?

fauve · 08-10-2009, 04:37 PM

This happened to us, but we're sitting in the shoes of the people you bid against that had the cash offer. Another buyer offered $2K more than we did, however I dont believe he had been told he got the house. I knew going in that making a cash offer, rather than leaving the cash in the financial markets earning income, was the only way I knew for sure we would get the house. And, as it turned out, it was. Since I took the money out however the market has risen 10%, so I don't really feel like I took the best approach. Better if I had just offered more and gotten a mortgage as things turned out - but how could I have known? What I was told was that there were 7 other offers that had been made in a 48 hour time period, but not what those offers were. I just gambled and put in a full price cash offer.

rkumar3 · 08-10-2009, 05:17 PM

I am a realtor and deal a lot with foreclosed/bank owned properties. This is a normal practice, a seller (bank as well as private owners) always prefers cash offer over a financed one. I have lost several deals where my client's offers are higher but seller chooses to go with a lower cash offer.

I don't think your Realtor or the seller has done anything wrong/unethical. It is a common practice. I know it sucks but it is a realty... To be honest now a days if i see a 'steal' in a the lower price range, I tell my clients upfront that they can submit their best offer but don't be disappointed if the seller chooses someone else's cash offer (even if it is lower than ours).

Anyway, don't give up, there are deals out there and you will find one... you and our Realtor just have to stay on top and watch the market on a daily basis.

Just my 2 cents..

bocamom · 08-10-2009, 07:22 PM

What if I submit a cash offer and look for financing after? is that done?

rkumar3 · 08-10-2009, 07:44 PM

It is possible.. although most banks require closing in 3 weeks on cash deals. My suggestion would be to buy cash, close on the house and refinance after a couple of months.... Or at least be prepared to close with cash with financing falls through for some reason.

AttilaLaczko · 08-12-2009, 11:28 PM

If you state you are going to buy with cash, you have to prove you have the cash with your offer, and then the speed with which you have to close (usually 3 weeks), you do not have any options. Cash is king, and it speaks louder than a financed offer - no matter how large the offer is.

Foreclosures are selling with multiple offers (15+), it is highly competitive, and usually selling above asking. It is NOT a fair game, no, no, but it is what it is, and these are the realities.