Wifey and I put a slightly low offer on a pre-foreclosure house in early January. We only had pre-approval paperwork from a previous property, but our Real Estate agent said that if it was too low, then the owner would just counter the offer. We waited for some time (having been forewarned that it could be a lengthy process).
In mid February we were informed that the property was going to highest bidder status and that we were to put in a new offer if we wanted to. We did put in a new offer, over 10% beyond asking price, and the waiting began again.
Today, our Real Estate agent told us that the listing agent said there are “Sheriff’s Sale” stickers on the property, slated for March 26th.
We don’t know if our offer is still standing or if everything is down the drain at this point. We can not seem to get any concrete answers from anyone involved, and would mostly like to know if it is possible for our offer to still go through or if the Sheriff’s Sale is our only option.
(Our Real Estate agent doesn’t seem to know much of anything helpful along the way.)
I would hire a real estate lawyer (one of the kind that does closings and works in a small office), shouldn’t cost too much. If these types of real estate lawyers aren’t presebt in your area then I would just call any local lawyer and see if they can help or recommend someone.
When properties are tied up with banks workout departments it’s often very difficult for anyone to get info until the bank decides what it wants to do. If the Sheriff’s Sale is for foreclosure the bank has apparently decided that -
1: Your offer wasn’t yummy enough or
2: It’s SOP if it can’t be made whole is to auction all real estate and by golly that’s what it’s going to do
I can’t be sure but sounds like your deal is off the table if they have moved to a foreclosure sale status. If there is a sale notice for foreclosure (not taxes or other stuff) your agent should be able to confirm this with the bank as it appears a decision has been reached.
In some cases there is room fora Hail Mary pass if the bank can be convinced your offer is a better option for them than auctioning. On the flip side you might get a better deal at the auction than a conventional purchase. There are even scenarios where a bank was unaware that an offer has been made because of the confusion that surrounds a foreclosure scenario. It might be worthwhile to make sure that the bank knows this in no uncertain terms.
Can you find out from your Agent what bank it is owned by and deal directly with the bank and their REO/Foreclosure department? Is the house listed by another agent and can you deal with them?
We tried to find the bank, but… it’s weird, We’re going through Agent A, who’s going through Agent B, who’s going through the Bank itself. We’re a few steps away, and they won’t tell us who the bank is!
It seems to me that the identity of the bank is almost certainly a matter of public record. The bank’s mortgage would be on file at the county registry of deeds. Also, the foreclosure action would have been filed at the county courthouse.
I would start by calling the town assessor to get the name of the nominal owner. The assessor may also know the identity of the bank, since taxes are often paid by the bank.
Once you have the name of the owner, you can check the grantor/grantee index at the registry of deeds to find the mortgage papers, which will identify the lender. Or you can check the docket at the local courthouse.
Better yet, check to see if this stuff is available online.
A lot of banks do not know what they are doing. You end up dealing with multiply people at the bank, and each one does not want to be the one to make a descision.
We are attempting to close a deal with on a bank owned property. My agent is dealing with 3 people at the bank. We can not get a signed offer or counter offer from the bank. We have our line all signed for and a rate locked in. We have to close by the 12th or we will lose the loan and the rate. The last call to the bank resulted in a request to extend the closing date to the 20th. Our agent told them if we do not close by the 12th then they have no deal. That was last thursday, still no answer.
We have come to the conclusion that the bank is not going to make a descision, each employee is afraid to make the descision. They are going to cost the bank the sale. And they will not like the conditions before we will consider reentering business with them.
We got tired of playing the game, so we rescinded the offer and got an Agent who knows what he’s doing. We looked at a few others, and the one you saw pictures of is the one we put another offer on. The offer was accepted, but we have to jump through a couple of hoops first. It’s a house that’s been renovated by a non-profit, and they can legally only sell to people within a certain income range. We’re within the range, easily, but have to provide proof and such. That’s what we’re doing, now. It’s all but ours at this point, and we plan to close on or before April 17th!