Why Won’t Bank Consider Offer?

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Dear Sue,

I sold my home last week. I have an all cash offer with a thirty day escrow. The only contingencies are inspections. I think that everything will be fine. I have a really good feeling.

Here is my issue. My husband and I made an offer on a foreclosure. The agent for the bank wouldn’t submit our offer because we made it conditioned upon our escrow closing.

This doesn’t make any sense to us. If the bank saw our offer I believe that they would consider it but the agent insists that the bank won’t look at any contingent offers so she won’t even try.

Do you think that we should submit our offer directly to the bank?

Frustrated Fran

Dear Fran,

Attempting to purchase a foreclosure is a great idea. Some of the best buys in today’s market are lender owned properties.

My experience has also shown that in some ways lenders can be easier to negotiate with than homeowners with short sales or resales. Lenders do however, have their own particular set of guide lines. They each have their own “rules of engagement.” These rules vary from lender to lender and are established in advance of offering the property for sale.

The selling agents must abide by the rules that are set forth by the lender. Those rules may not always make sense. It appears as though the lender in your case will not look at an offer that contains a contingency to sell or close on an escrow in order to purchase their foreclosure property.

I would not recommend going directly to the bank.

Is it possible to get your buyer to remove their contingencies? If you have an all cash offer, financing shouldn’t be an issue. If you could get your buyer to speed up the inspection process and remove all contingencies, you could resubmit your offer without the sale contingency. Please be advised however, that should your sale fall though, your deposit could be in jeopardy.

Ask your agent to contact the bank's agent and find out what the lenders requirements are for submitting an offer. It can be a matter of good Home $$s and Sense.