advice...attempting to purchase a foreclosure (short sales, foreclosures, loan)

[dada81781]

I'm attempting to purchase a foreclosure. Originally I was the only offer but found out that two other offers that came in.The bank told me that I needed to submit "my highest and best" and which I did. I found out that I had a winning bid and the bank counter offered on the good faith deposit that I submitted.I accepted the banks counter offer and provided them with the good faith deposit that they requested and sent in all paperwork and good faith deposit and now I'm waiting on the bank to sign off so I can start the inspection process. I just found out that the asset manager stated that another offer came in with someone who has a conventional loan, I have a FHA loan and the asset manager brought up the fact that my lender may not be as lenient when it comes to the inspection and appraisal and I may not get the loan. However my agent and the agent for the bank both reassured the asset manager that the house is in great condition and there should be no problems when it comes to the inspection. My question is can I get bumped because the bank would rather go with the conventional loan vs the FHA loan? Even though I already accepted their counter and provided them with everything they asked of me. Please advise. Thanks

[Kefir King]

When You're in Contract to Complete the Deal


A contract is formed only when either the seller or the buyer accepts all of
the terms of the latest offer or counteroffer from the other, in writing and
with a signature, within the time allowed. Because every offer or counteroffer
must include a signature, that basically means that you will have both signed on
to the deal when the second party accepts the offer or counteroffer. Your two
signatures indicate a mutual agreement and a binding contract.

So until both have signed off on the deal, there is no sales contract.
(Personally I think it stinks that a bank would operate in the sleazy manner that this one is. That's why banks have such rotten reputations.)

It seems you have no recourse. It is not outside the realm of possibility that the bank is lying to get you to increase your offer.

<Foreclosures and short sales are a pain in the ass for the buyer.>

the asset manager brought up the fact that my lender may not be as lenient
when it comes to the inspection and appraisal

You know, this may indicate that the house is either overpriced or in need of some serious repairs. Perhaps you are being saved from a mistake. You really don't want to pay more than a house is worth, nor do you want to move in and find the foundation is leaking like a sieve, or the house needs complete rewiring and plumbing.
The FHA makes these rules to protect both themselves and the buyers.

My gut instinct: let the other guy have it.

[dada81781]

Thanks for the advice!