Katrina-

Fake counteroffers -

Keep your eyes out for these. Listing agents have been making counteroffers before they even submit to the bank. It goes like this

"Hi Buyers agent, I am the Bank's agent, we're making a counteroffer on your client's offer" 

"Great! How much is it?"

"Give us your final and best and sign this document acknowledging that we are taking multiple offers."

"Um, ok. Is this the bank's counteroffer?"

"We'll send the counteroffer and multiple offer paperwork right now." 

Din Ding-a-ling -

I am not talking about shopping for a mortgage on a property that has an accepted bid, or one that has an appraisal.

I am talking about the banks requiring that we get an approval from them *to even make the initial bid.*

They will not take approvals from any other bank.

They will not take my own credit report that I ran myself.

They will not take a prequal.

And because I don't bid on houses every day, or all in the same week or month, I am getting dinged like a duck in a shooting gallery. Trust me. I check.

But thanks so much for getting an expert on the line. There were some good nuggets of wisdom in there. 

"I don't know what to do with those guys. I am filing a complaint with the BBB but I don't know where to report them about the missing documents. On the top of it they tried to blame my loan company for not giving those documents to them. My wife and I clearly remember signing them."

You forgot to re-mention in your post that it is Lawyer's Title giving you the no-service.  It's OK, I'll do it for you and add my Lawyer's Title saga:

I was in escrow, assigned to Lawyer's Title, and unable (seller's choice or no deal) to use the company that had completed several successful transactions for me in the past.  Upon review of the Association's documents, I canceled the escrow.  Lawyer's deducted the costs of providing the  association documents from my funds, in direct conflict with written instructions and California law.  I pointed this out, and their response was: "so sue us."  Days later I finally received a return call from Lawyer's Title legal department in Ontario, and I read aloud from the instructions: "Escrow shall bill seller for cost of documents" and asked to see the bill issued the sellers when the documents were ordered.  Of course, none existed, so eventually, and without comment, my refund was issued.

Lawyer's Title: no, no, no, unless you can't use any other.  If you use Lawyer's Title, it's a do-it yourselfproject, so plan to allot time to hang in their offices several days or be taken advantage of.

Finallyyyyyyyyyyyyyyyyyyy.

My agent informed me today that we finally closed the escrow at 5:35PM.

He is bringing me the keys tomorrow.

It was not completely flawless because I had to resign the document I signed last night. The document was not completely up to the lender's standard but I am happy. Lets see what they have missed and what I am going to have to pay additionally after the escrow.

Well X, seems I've now been tainted with what you described as "fake counter offers." Here's my saga: I submitted an offer for a client on 2/19, we received a counter offer weeks later on 3/ 4 which my client marked up a bit with a lower price ($290K asking, he went $280K) and closing costs; on 3/12 we received another counter halving his closing costs and the difference in the asking price (now $285K) he accepted that counter. I just got a call today that his offer was rejected as “corporate” still wanted the original asking price of $314K! Apparently the asset manager wants to sell this property, and knows it’s overpriced at $314K but corporate won’t budge from that price and can’t do a price reduction for another 78 days. So they wasted one full month of my clients search time!

Yes, Virginia there really are fake counter offers!

Makes you wonder if the bank wants to sell that house at all.  In 78 days, it might not be worth $280-290k.  And if they start at $314k, they might only lower it to $300k, firm, which doesn't help get it sold.

That's exactly what I'm talking about Katrina.

Now wait for steps 3 to 7.

I have no idea yet how to cut across all this bullfun, but when I do I will let everyone know.

You know, I bet this has happened on a couple of the houses I bid on.

It would explains why things keep going off the MLS and popping back on a month later.

It explains why I lost my last house to an all cash offer that was close to the same amount.

And it explains why the listing agent never tells my agent WHY the last deal fell through.

I am eager to hear more as it happens.

X

More fake offers, more lies more deceits...it is so sad, one day the banks/lenders will starting dumping these properties.  As unemployment rises, food continuing to rise, who knows what will happen in 6 to 9 months.

I am so, so  glad that we were outbid on properties about 5 months ago, these same properties w/new listings are now 40K less on average. Now just Watching for a bit....

One of the problems with REOs, is that when the offers are submitted, IF they are submitted, their loss litigation / asset management are supervised by attorneys!  Attorneys are not housing experts, nor do they completely understand the housing market. Even though they are RE Attys. They are all about the money too, they receive percentage kickbacks from the banks/lenders.  Amazing unethical turmoil, going on.

I have a good friend of mine in San Diego county who is a RE Atty, and boy have I probed him with several Q over a course of 6 months.  I tell you, LOL they do not know as much as one would think, LOL...