San Diego

[RRW]

Hi, Anyone know how to read this situation. Made an offer on an REO early Jan. It was pulled off market before my offer made it to asset mgr. House was relisted this week. Submitted the same offer full price, no closing costs, conventional, ten percent down, great ficos, with pre approval. My agent told me that they are expecting multiple offers. The next day my agent notifies me that the bank has responded with a counter. Purchase price is the same I just need to agree to terms of inspection, earnest deposit and date for close of escrow with a per diem fee for not performing on time. I sign it right away and my agent delivers it to listing agent for the asset mgr to sign and fully execute and we are in escrow.

Afew hours later I get an email from my agent stating they received many offers and not to get too excited. That was Thursday, no reply Friday from listing agent..my agent told me to be prepared to make a highest and best offer even though no one has asked yet.

Here is the questions:

Do they send these addendum's to everyone that puts in an offer?

Will they ask for a counter from me if someone has a better offer or just forget me altogether?

What should I expect from here?

Thanks for the help!

[Elephant]

If you accept the counter offer, and the contract is formal. You can sue for performance or damage, if the seller refuses to honor the contract. But I am not sure how much good it will do you.

[RRW]

Thanks but the catch is they send you the purchase addendum unsigned. You sign and return and wait for them to complete and execute contract. In the mean time people can still submit offers to the listing agent and bank.

[dallen]

The listing agent probably had you sign that since they know what the bank is looking for and your offer probably included things the bank won't except.  So it was probably not from the "REO bank" but from the listing agent to get your offer to conform with what the bank wants to see.  And everyone who offered probably had the same thing, if their offer listed things that the bank won't accept.  Unfortunately, your probably not any closer to anything just because you signed that paper.  But, if you love it, hold on and wait a while, you might be the only one standing when the bank does have an answer, everyone else might have moved on...

[RRW]

That really stinks..I wish they would have told me that. The addendum was on the banks letter head, REO asset managers contact info, email and phone, stated it was a legally binding contract and had directions for listing agent to upload the contract upon completion. I can not figure these types of transactions out.

[RRW]

Here is my update. Cash buyer came in and knocked my initial offer off the table. A few days later the REO Asset Manager asked everyone for there highest and best offer. I increased my price a little over 10K and removed some contingencies from my contract , they accepted my offer within an hour. I am very happy with the outcome thus far. Still paying under market value and this is the house I really wanted. 

Thanks for the help.

[fslarry]

Way to go!! That proves that it is possible to still beat out those cash investors.