Offer too high
Anyone have a seller "hold on to your offer because they think it's too high to get a loan"? They won't accept or decline.
If you think you are getting the run around with an offer, is there any recourse for a house listed as a short sale in lieu of foreclosure? We love the place and would love to advocate for ourselves if we knew what path to follow.
Replies to This Discussion
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Permalink Reply by Richard on
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Lara and Harry,
I'm no agent but, this one seems strange, even to me. It would appear that this may be a sidebar motivation issue with a different agenda. Maybe that's the reason they are in this bind to begin with, pure ignorance. And, who are they to say your offer is too high for their lender. I've never heard of lenders turning away more money...........but, just maybe its starting to snow in hell.
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Permalink Reply by Jeff Payne on
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Harry, my friend, again you are SPOT ON! There could be several things going on there but the one thing that is not going to happen is a short sale. Time to move on.
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Permalink Reply by Laura Hunter on
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I was afraid you all would say that! It's too bad because we really like the house and its location. Ethically speaking, is there anything we should do to alert others to the "sidebar motivation"? It just doesn't seem right.
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I would not necessarilly throw in the towel, the above comments are most likely correct but if you like the property, do some digging and ensure that this is the sellers dragging their feet and not something odd at the lender. I just recently had a SunTrust deal that we had a strong offer, it was significantly above the BPO that the bank received. The negotiators manager would not sign off on the deal at first because he said "there is no way the buyers will be able to get financing at this price level". After he was shown that the offer was a cash offer, he still kicked and screamed and they did "extra forensic review" to make sure nothing funny was going on like an arms length or something.
They eventually approved and we closed, but it delayed approval by a couple of weeks...so yes, hell has officially frozen over and it is snowing.
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Thanks for the reply. Not to be too dense, but who is the negotiator's manager? Our seller has refused to present our offer to the bank and will not provide authorization for us to speak with the lender. It is the seller that has the concern about our ability to get a loan. As a side note, the bank's appraisal came out at @ 2X our offer...
Thanks in advance for your response.
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Laura, I have to start over, I re read this post and now I am confused, which is easy to do for me :)
Did the seller accept your offer in writing?
Once you answer that we can go from there
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Some lenders require that their negotiators have their work signed off on by a manager before they can issue approval, it is a behind the scenes issue.
Based on your additional response, it is obvious that the hang up is with the seller...either they are not serious sellers or for some reason they do not feel that you are the candidate they want to take to the finish line. Are you putting a large amount of money down or are you using FHA/VA/Rural financing with min down payment? I have seen sellers, appropriately in some cases, not want to move with certain buyers/offers because they don't want to get the deal approved and then have buyer financing fall through, they would prefer to be choosy and take a well qualified or cash buyer to the finish line with them. Not saying you are not well qualified because I have not idea, but this can be an issue.
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Jeff - The seller has not accepted our offer.
Sam - I am putting more than 20% down, it's a traditional 30 year, have amazing credit rating and a letter from my broker that has been provided to the seller.
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Laura, now we can get somewhere...
You made an offer that was not accepted by the seller. You dont have anything to talk to the lender about, you dont have anything to send to the lender because without an accepted offer, there is nothing that can happen. Even if the seller gave you authorization to talk to the lender (which is highly unusual) the lender would have nothing to talk to you about unless the seller agreed to your offer.
One other thing that strikes me as strange is that you state the lenders appraisal was 2x your offer. What appraisal? It certainly wasn't done for your short sale because without a signed contract you don't have a short sale. Either the lender did an appraisal for another offer that may have been on the short sale or the sellers side is making up stories, I tend to believe the latter.
Laura, I hope that I don't sound too harsh but if I were in your situation I would do one of two things, maybe both........move on to another house, and/or find a new agent that understands the short sale process.
Good luck and keep us posted
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Jeff - harsh is good and the reason I asked an uninterested 3rd party! My assumption is there is another offer they are trying to push through and the appraisal (recorded in the foreclosure court proceedings) was done for that reason.
Even if there is another offer in the works, they could approve my offer and present as a back up to the lender...correct?
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If they seller accepted another offer, they can accept yours as a back up. If the listing agent knows their stuff, they would NEVER send a second offer to the lender because it will just screw up both offers. Who is the lender? What state are you in? that could be the very reason the seller has not accepted your offer, they already accepted one. They could at least just tell you that.
As far as the appraisal recorded in court proceedings, are you sure that you are not looking at a judgement? I have never seen an appraisal recorded in a foreclosure proceeding.
Who is the lender and who is the investor (Fannie, Freddie etc)
How many mortgages are there?
The reason I ask these is because your agent should have asked questions like this before ever presenting an offer for you
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Primary just transferred from BofA to GT and in total there are 2 mortgages (the other is with Citi (Vericrest)), but more interested parties (MI, etc.). I am in OK. My realtor and the seller's realtors admittedly are not an experts and confirmed that it is an appraisal that has been recorded with the county. There are not that many short sales in this area.
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