Question about Bidding on Freddie Mac REO

[Payam Sharifi]

Ok so there was this house that just went on the market on thursday, I put the bid in on the same day at the full price they were asking for. They come back friday stating that someone else bid on the house too, and now they were asking for the highest price. By Monday like 5 other people had put a bid on it too. My question is, should they have sold me the house if the other person who put the bid in bid lower than me? Or are they obligated, because its a freddie mac reo, to automatically engage in a bidding war if there is more than 1 bid even if one was higher than the other(and even if one person was willing to ask the full price asked for?) Thanks in advance, I live in kansas city Missouri.

[Jon Holdman]

This is not at all unusual. Banks seem to pretty commonly put their REO's out at a good price hoping to generate a bidding war. Their hope seems to be to sell it for more than the listing price. Asking for "highest and best" also seems to be part of the game. Make your offer for the price its worth to you, then go find ten more to make offers on. With offers on ten, or maybe 20 houses, you should be able to buy one.

No, they are under no obligation to accept your offer.