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I found a great deal on a foreclosure property in NC. My partner called the listing agent Nov 2 and was told someone made an offer on it an hour earlier. Since foreclosures generally take more than an hour for approval, he asked if we could also submit an offer. He refused, saying it was under contract.
It was back on the market in a week (yesterday). I called a realtor I had used previously. She told the listing agent late Monday afternoon that I wanted to make a cash offer. (She knew I was legitimate because I've purchased two other houses through her.) Tuesday morning, I made a cash offer of several thousand over list. She called the listing agent, but he told her it was under contract. He won’t even take my offer as a backup.
My partner called the listing agent. He said they never received the first contract (when our offer was first refused) so it went back on the market. (HOW could he refuse our offer when he didn't even have a contract?!) He said our realtor told him on Monday we wanted to make an offer, but he took an offer Monday night and it was accepted by the seller before our realtor called Tuesday morning (today).
My experience with foreclosure has been that it takes longer than this for approval, particularly if an offer was received in the evening. I don’t understand why the listing agent (supposedly representing the seller) wouldn’t wait even 24 hours when he knew my offer was coming.
Is there any way I can contact the lender to verify it actually is under contract this time? Is there anything else I can do?
I can tell you what I would do (not to be confused with good advice).
I'd contact the corporate office of the note-holder and let them know that one of their properties is not being allowed for a (in CAPS) "CASH OFFER ABOVE ASKING PRICE".
I found a great deal on a foreclosure property in NC. My partner called the listing agent Nov 2 and was told someone made an offer on it an hour earlier. Since foreclosures generally take more than an hour for approval, he asked if we could also submit an offer. He refused, saying it was under contract.
It was back on the market in a week (yesterday). I called a realtor I had used previously. She told the listing agent late Monday afternoon that I wanted to make a cash offer. (She knew I was legitimate because I've purchased two other houses through her.) Tuesday morning, I made a cash offer of several thousand over list. She called the listing agent, but he told her it was under contract. He won’t even take my offer as a backup.
My partner called the listing agent. He said they never received the first contract (when our offer was first refused) so it went back on the market. (HOW could he refuse our offer when he didn't even have a contract?!) He said our realtor told him on Monday we wanted to make an offer, but he took an offer Monday night and it was accepted by the seller before our realtor called Tuesday morning (today).
My experience with foreclosure has been that it takes longer than this for approval, particularly if an offer was received in the evening. I don’t understand why the listing agent (supposedly representing the seller) wouldn’t wait even 24 hours when he knew my offer was coming.
Is there any way I can contact the lender to verify it actually is under contract this time? Is there anything else I can do?
This sounds all too familiar to me......and based on my own experience, I would began my research with the listing agent. Start with finding out if the listing agent brought their own buyer. You can fill in the blanks why they would be motivated to shoo you away. That would be my own guess as to what possibly happened here, as this happened to me and others I know.
That said, you should be made aware, that many banks do review and accept offers late into the evening hours. It is typically a Monday through Friday thing, but many loss mitigators and analysts take their work home and will review offers past 9pm. So there is an outside chance he is telling the truth. I would still find out if the listing agent is bringing their own buyer though, as this is what happened to me before.
Last edited by WilliamHarman; 11-10-2009 at 03:25 PM..
If this is fully foreclosed property and it is lender owned it sounds an awful lot like some funny business is being played. Too many lenders have absolutely clueless fools filling out the "broker qualification forms for 'agents' that are out to screw the lender and funnel properties to insiders. If you can get the right message to the right people insider the lender this sounds like a situation that should at the very least be investigated for ethical violations if not outright fraud.
Thanks for the input. I'd like to contact the lender to check the status, but I don't have their info. The tax records show the name of the former owner. I understand I can check the courthouse, but I understand lenders often sell notes, so that may not be accurate. I'm trying to find the lis pendens notice, but no luck so far.
Because this is the second time it's happened (same property), I'm more suspicious. Last Monday (11/2), he refused my offer, saying it was a "done deal," but it turns out he had no contract in hand. According to my agent, the seller insisted it be relisted (it was removed from the MLS). It just came back on and now I'm told the same thing (under contract).
This one hurts because it's more than just another investment. It's the property I've been looking for as my own home. Since my realtor told the listing agent (yesterday afternoon) my offer would be coming, I thought it was safe to wait until this morning. I was up half the night crunching the numbers and it's frustrating that I didn't even get a chance.
Thanks for the input. I'd like to contact the lender to check the status, but I don't have their info. The tax records show the name of the former owner. I understand I can check the courthouse, but I understand lenders often sell notes, so that may not be accurate. I'm trying to find the lis pendens notice, but no luck so far.
Because this is the second time it's happened (same property), I'm more suspicious. Last Monday (11/2), he refused my offer, saying it was a "done deal," but it turns out he had no contract in hand. According to my agent, the seller insisted it be relisted (it was removed from the MLS). It just came back on and now I'm told the same thing (under contract).
This one hurts because it's more than just another investment. It's the property I've been looking for as my own home. Since my realtor told the listing agent (yesterday afternoon) my offer would be coming, I thought it was safe to wait until this morning. I was up half the night crunching the numbers and it's frustrating that I didn't even get a chance.
If I can identify the lender, I will inquire.
Many thanks again.
I would also file a complaint with the state real estate licensing board. I can't think of a single state where this wouldn't violate fiduciary duties.
Sounds fishy for sure. Don't know that you'd have much success contacting the lender directly but if you report the agent he may have to prove when things were done and he could be punished by the local board. That's route I'd suggest.
If this is fully foreclosed property and it is lender owned it sounds an awful lot like some funny business is being played. Too many lenders have absolutely clueless fools filling out the "broker qualification forms for 'agents' that are out to screw the lender and funnel properties to insiders. If you can get the right message to the right people insider the lender this sounds like a situation that should at the very least be investigated for ethical violations if not outright fraud.
Quote:
Originally Posted by Silverfall
I would also file a complaint with the state real estate licensing board. I can't think of a single state where this wouldn't violate fiduciary duties.
Quote:
Originally Posted by Brandon Hoffman
Sounds fishy for sure. Don't know that you'd have much success contacting the lender directly but if you report the agent he may have to prove when things were done and he could be punished by the local board. That's route I'd suggest.
Ditto here. Something just doesn't smell right about this entire situation.
write you offer, and then have your agent request to be present when the listing agent presents to the owner. Listing agent MUST present All OFFERS, even if the there is an accepted and ratafied contract. And because of the issues, your agent would request to be present.
In the least it would give you more ammo when you file a grievance.
write you offer, and then have your agent request to be present when the listing agent presents to the owner. Listing agent MUST present All OFFERS, even if the there is an accepted and ratafied contract. And because of the issues, your agent would request to be present.
In the least it would give you more ammo when you file a grievance.
shelly
Good advice! Unfortunately few agents have the knockers to make this demand.
I've been through this exact same scenario TWICE trying to buy a REO sale. I am not allowed to discuss the final outcome, but I'll just say two agents found themselves answering all sorts of questions and are no longer in the Biz!
I cannot advise further on this topic, but their are agencies out there, private firms that for about $1000 can easily track down what happened to your offer. They can do so in a court qualified manor.
Simply put, if the listing was still open and your offer was not presented, you got yourself a case.
I'm curious, where in NC did this happen?
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