Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on September 19, 2011 at 4:50am

Dan,

 

In reality your Approval is/was only good for a specific buyer.

Permalink Reply by Karen Butler on September 19, 2011 at 5:14am

In most cases, when they give the approval, they will also give you a close no later than date (right around 30 days).  Several lenders are also letting you submit a new offer in place of the original offer when the buyer walks (guess they've noticed a trend when their process just takes too long) and you/your Realtor doesn't have to start from scratch.  The good part for the new buyer is that  you guys will know what Chase will accept and would have a shorter wait time. 

 

The important thing to remember is to try to get your extensions signed to keep the deal alive.  Your agent will be able to market it to make it know to other agents that you had a previous buyer that walked.  So for now just get it back on the market and wait for the approval to come in.  The first time I had a buyer walk, the bank made me start all over, so the 2nd time I got an offer, the process was still dragging on and I just didn't tell them the buyer walked and when I got the approval I had a 3rd buyer in place.  It's a nightmare I know, but hang in there.

Permalink Reply by Brent Innocenzi on September 22, 2011 at 6:28am

1. You need to get the approval in writing. 2. You'll need to get another buyer. 3. Upon, obtaining another buyer, you'll need to get an updated approval reflecting their name and updated closing date. This is not difficult at all to do, if the terms are the same.

Permalink Reply by Debra Enos on September 22, 2011 at 9:30pm

Sorry to hear that.  Unfortunately, the approval isn't real until it is in writting.  Second, the approval was for "that offer - that buyer". Have your Realtor contact Chase as they are obligated to inform them that the buyer "walked".

Banks are finally getting use to this happening and many are updating their policy on submissions of new offers to replace the initial buyers offer.  So the next round won't take so long.  So I suggest that you change your list price to the banks approved price, or a little lower, depending on the age of the offer and current market comps. Have your Realtor contact everyone who submitted unaccepted offer, and agents who showed the property and let them know that you are looking for an offer, as the buyer walked but you were able to get approval on the first one.

 

You said that the house is "being relisted". Your Realtor shouldn't allow your listing to expire, especially if you have an accepted offer. And, always look for backup offers, for this very reason.

 

I'm curious.  When did your buyer decide to walk? Right after the banks acceptance, or earlier and his agent didn't notify, or your agent didn't stay in contact to keep them updated? And, why did your Realtor allow the offer to expire?

Permalink Reply by Dan McHale on September 23, 2011 at 8:28am

Debra/Brent/Karen/Kevin,

 

Great comments....  Debra thanks for detailing some questions..  That gives me things to look for when the next buyer comes along..  Since going back on the market (Monday) we have had two walk throughs and a couple of calls...  I think we stand a good chance of selling sooner rather then later...  The house was approved at $135K and is relisted as such with the words Bank Approved in the listing...  Some other items:

1). Realtor sent a fax to Chase on Wednesday advising that the buyer walked away. Still have not heard back from Chase.

2). Good idea on contacting all the past Realtors who have shown or called on the property.

3). As far as I know, Realtor did not look for a back up offer. The house was not shown after the contract came in to the Realtor.

4). Buyer decided to walk away around the same time as the approval came in. During the process I was sending my Realtor a note asking if he was in contact with the buyer's agent. The response I got back was always Yes (never saw any emails to and from the other Realtor)..  My Realtor told me that a couple weeks ago the other Realtor stopped responding to his status update notes. Should have been a Red Flag right there....

5). No idea why the Realtor allowed the offer to expire..

 

I know this is not the right thing to say, but does the commission that is going to be received from this sale ($135K) play into how much time and effort the Realtor puts in???  I have been doing most of the heavy lifting with Chase on the approval front. I have been calling, emailing, and faxing multiple times each week. You guys raised a couple of questions that I should look into: why no back up plan??  how did we let the other Realtor off the hook with not responding a couple weeks ago?       Thanks again...