02-05-2013 01:02 AM
Ok so here is what I went through with an offer I put on a Bank of America reo house:
02-05-2013 03:03 AM
Since it took a month from pending to close of escrow it probably was not a cash deal. Were you trying to buy FHA? It wasn't dual agency. I can think of 2 reasons why they would not accept your offer.
1.) They did not think you would qualify for the loan or there would be a problem with inspections.
2.) They did not receive your offer.
02-05-2013 10:48 AM
If you really want to be certain, your realtor should ask the listing agent to initial the contract saying that the offer was presented. It is in the standard offer paperwork but not widely used or requested.
With this particular property the agent representing the buyers works for investors and it is likely that they offered a non-contingent purchase which is always more attractive than one with a loan contingency. I've worked with him in the past year on a deal where he represented the sellers of a property my client purchased.
02-05-2013 10:59 AM
Thanks. My offer was conventional with 20% down. I think it must have been #2 - They did not receive my offer, meaning the listing agent never submitted my offer. I can't imagine a bank going with an offer under list price that is not cash when my offer was 20K higher.
02-05-2013 11:06 AM
I've never represented a bank seller but can tell you that there is ample evidence of bank sellers choosing much lower offers on properties in Los Angeles.
In the past 12 months, it has happened to me at least 5 times. In two cases I suspect there was some sleaziness on behalf of the listing agent and I've called them on it. Unhappy conversations resulted.
Ask your realtor to get an explanation of what happened.
02-05-2013 11:47 AM
If you are going to spend your time not only hunting for a house but also crusading to eliminate unfairness from the world, or at least the world of real-estate transactions, I hope you don't plan to hold down a job in the meantime, Don Quixote.
Get over it. Your offer wasn't accepted. Maybe the bank saw it, maybe they didn't. Maybe the listing agent is an evil orc who just flushed your offer down the toilet because he didn't like your face or the spelling of your last name.
So? What are you going to do about it? Don a mask, hunt him over the rooftops, and carve a Z in his face with your blade? Spend your life savings suing him? Organize a mass street protest?
If you think the listing agent was dishonest, don't deal with him again. Publish his name and warn other people not to deal with him. If you think your agent wasn't forceful enough or clever enough, fire him and get another. If you think BofA was defrauded by the listing agent, write them a letter if it makes you feel better. If you think they were idiots and failed to give the listing agent firm instructions about presenting all offers, sell your BofA stock. Or if you are a major shareholder, talk to your lawyer about a shareholders' lawsuit against the board for failing to execute its fiduciary duties.
And then go put your energy into finding a house. Buying a house isn't something to which you're entitled, once you dot all the i's and cross the t's, any more than you're entitled to go to the prom with the Homecoming Queen if you're the most polite and talented guy who asks her. It's a lucky coincidence when two parties reach mutual agreement. There are a million ways that can fail to happen, a million combinations of self-interest, accident, and sometimes ill-will, and if you attempt to correct them all, you'll never get anything else done. As they say when the girl rejects you, move on already.
Sorry to be harsh, but you sound like you need a little slap upside the head. The sooner you fully appreciate buying a house is a business transaction, not a morality play or dating scenario, the more cool-headedly effective you'll be in your next attempt. So BofA and/or the listing agent were idiots? Well, ha ha on them. That's a little less comish for the agent, and a little less bread for BofA to prop up their pathetic bottom line. If both continue that way, doom awaits, as the market remorselessly weeds out the stupid and inefficient. You're going to take your good money elsewhere and leave them to their fate. Your living well in some other, better house will be your revenge.
02-05-2013 02:12 PM
when we don't hear back on an offer, our agent checks on the status and makes sure to get a response. she's very involved and makes sure to stay in communication with the listing agents, which is one of the reasons we are working with her. if your agent isn't doing this, and knows you want him/her to do so, change agents so next time you'll know what's up.
02-05-2013 08:26 PM
Be quiet? Is that all you guys suggest?
Gee, no wonder these all no show/no response to phone calls nor offers realtors are getting away with murder.
I am all pro asking for proof that my offer got received by the bank. Period!
I can tell you guys, I have been in meeting with realtors and they talk something I can't tell here. They talk about all those friendly investor guys that receive the first call once a property comes into their hands.
Money, money, money, is all about money! Forget the poor first time home buyer! It's been a year since we bought our home and still complaining to the point that "they are coming to see what's the complaint about". Never, ever give up! Complain, complain until you see results!
02-05-2013 11:48 PM - edited 02-05-2013 11:49 PM
Thanks everyone for the advice. I will ask for proof that my offer gets received by the bank the next time I put an offer in on a reo. I did not know that you could do that until now. Hopefully I will find a home soon. It has been two months since I started looking.
02-07-2013 09:58 AM
It has been two months since I started looking.
Good luck on your search. My husband and I actively shopping for almost 18 months before we found our home. We had offers into other homes, some responded to, some not and even a few accepted (that we backed out on).