Bank Counter offer after acceptance?

Question

I made an offer on a foreclosure (REO) property in my area.  The company handling the foreclosure for the bank accepted my offer 3 months ago and informed us that the bank would take about 4 months to close the deal.

Yesterday, the bank replied countering our offer from $325K to $375K.  Has anyone seen this before?  I figured once the offer was accepted, that the price was set.  How can the bank counter our offer this late in the game?  We are countering back with the list of repairs and bids we have from contractors to demonstrate the house is not worth the amount they are asking, but I am unclear how this is working.

Any insights would be helpful.

Tom Gimer · Answer

If you counter rather than promptly making a claim that there is already an enforceable contract... not good.

Russell Brazil · Answer

Just point to your contract

Tom Gimer · Answer

This is an REO, not a short sale. OP said they told him it would take a few months to close... not to obtain approval.

Very odd.

Christine Kankowski · Answer

Most likely there was a contingency in the initial offer that the contract needed to be approved by XYZ at the bank.  This is very typical in a short sale (not a bank owned)  In a short sale, buyer and seller agree to a price and hten submit to bank for approval,  The bank then does their due diligence to see if that price is good, sellers have a hardship, etc.   At that point, they counter to the buyer.

If they told you it was going to take a few months for approval, this is probably what happened.  Read through the entire contract and listing.

Ddi you already do inspections, appraisals and all that, or were you waiting for a final approval?

Best of luck

Tom Gimer · Answer

Who signed the PSA? Is there a "third party approval" contingency?

These people can't pretend not to know anything about agency law.

David Christie · Answer

There is a signed P&S agreement with the price and conditions clearly stated.  The foreclosure administrator is claiming they accepted, but the bank can counter, but there is nothing in the contract about that.  Thus the confusion.

Have any of you go through a sale like this?  One where you are buying through a foreclosure administrator rather than the bank directly?  If so, what was your experience?

Brian Pulaski · Answer

Did the bank sign the contract, and if so do you have the signed by both parties document? If so I imagine you have some ammunition to go back and state you had an agreement. If you never received a signed contract at your agreed to price, then truthfully it sounds like someone agreed to it verbally who had no ability to do so.

Bank Counter offer after acceptance?

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