REO with large listing price drop (negotiating, agent, accepted, property)

[Litlove71]

I was able to get in to see a property that had a big price reduction, roughly within 48 hrs of 1/3 price drop. There were no pics of the inside and no description, and surprise, surprise, it was gorgeous and I wanted to make a full offer. My agent had difficulty getting ahold of the listing agent that had a family emergency, and he was told the next day the bank had accepted another offer.

It didn't switch to pending and I tried following up and was told at the office it was not pending. I left a msg for the agent and was told I'd get a return call shortly. 5 days pass and the agent calls and apologizes but they had a buyer that had been negotiating for a long time, so by the time I saw it, it was too late. Why the heck drop the price then? Just to hunt up clients? This just feels off to me.

Any opinions? Would it be worth trying to contact the bank directly? Thank you.

[Mack Knife]

A pretty typical scenario. Although that listing agent might have a family emergency, they could also be waiting for their pocket buyer to get back from the golf tournament so that they can get their offer in. It happens all the time. Change the location and it happened to me---once and it won't again.

You never had a chance. There was in all likelihood, no emergency more important than a hangnail.

You can contact the bank, they will refer you to the listing agent. The only way you are going to get some recourse is to call the listing agent and ask them what it takes to get that house. How do I know? Because it worked. I called the bank, bank asset manager told me there was indeed an offer in. I call the listing agent who tells me the price at which they would pull the offer in at the bank and let me have it. For a tidy little amount over the existing offer, I can have it.

I declined. Why work with someone like that? As it turned out, that property still hasn't closed. Word is that it is about to drop out of escrow. Imagine that.

Possibly fraud and any number of laws broken by the listing agent and also the bank? You bet. How often does it happen? More often than you think.

Pocket buyers are not uncommon. Ethics at work.

[EngGirl]

I assume it has something to do with their system being behind on real time updates. Similar thing happened to us as well and even though we were told there is an offer, the house were listed as active for another week!

[kww]

Originally Posted by EngGirl

I assume it has something to do with their system being behind on real time updates. Similar thing happened to us as well and even though we were told there is an offer, the house were listed as active for another week!

if its a foreclosure, there will be bank addendums after offer acceptance. until those addendums are sent to the buyer, filled out, sent back to the bank representative for review and their signatures, the property is still technically active.

once these addendums come back signed by both parties, it will then change to under contract..


this is how it's done in my area

[EngGirl]

Originally Posted by kww

if its a foreclosure, there will be bank addendums after offer acceptance. until those addendums are sent to the buyer, filled out, sent back to the bank representative for review and their signatures, the property is still technically active.

once these addendums come back signed by both parties, it will then change to under contract..


this is how it's done in my area

I wasn't talking about a foreclosure... as topic title says more about REO

[kww]

Originally Posted by EngGirl

I wasn't talking about a foreclosure... as topic title says more about REO

then my apologies.. after the thread starter referenced an REO, and you mentioned that you had a similar thing happen to you, I assumed you also were looking at a foreclosure

carry on