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07/15/2009 12:26:01 PM · #1 |
I realize this is a photography forum but hey......
So we found this property on the CHEAP (foreclosure) and want it. I found out that a dude made a lowball offer for it at the bank and is scheduled to close August 8th. I'm willing to go 10 grand more in a cash sale for the property and I'm sure the bank would rather have my offer ;). My question is this - can the bank just back out on his deal and accept mine or are they required to have a valid reason other than having a larger offer?
Any ideas? |
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07/15/2009 12:28:14 PM · #2 |
I would think that if he has already signed contracts and they are just waiting for the close date, the bank cannot back out. BUT, it's a bank, you dont know what they can do =)
It never hurts to call and make the offer. I just bought a house as well, so glad that's over with!
*edited to add that by no means am I an expert on real estate. Im sure there's a realtor or mortgage broker somewhere on this site*
Message edited by author 2009-07-15 12:29:26. |
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07/15/2009 12:43:17 PM · #3 |
Originally posted by Phil:
I'm willing to go 10 grand more in a cash sale for the property ... |
Can I point out that this is basically how the "housing bubble" which recently collapsed was initially inflated? Why not ask the bank if they have any similar properties available and save the ten grand for the renovations/repairs which will likely be needed? |
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07/15/2009 12:49:25 PM · #4 |
| As long as the buyer meets the terms of the signed contract, the bank must honor the contract. |
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07/15/2009 12:51:10 PM · #5 |
Originally posted by Nobody:
As long as the buyer meets the terms of the signed contract, the bank must honor the contract. |
Thanks. So the buyer can't back out either, right? |
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07/15/2009 12:52:05 PM · #6 |
Originally posted by GeneralE:
Originally posted by Phil:
I'm willing to go 10 grand more in a cash sale for the property ... |
Can I point out that this is basically how the "housing bubble" which recently collapsed was initially inflated? Why not ask the bank if they have any similar properties available and save the ten grand for the renovations/repairs which will likely be needed? |
Because. |
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07/15/2009 12:57:44 PM · #7 |
Originally posted by Phil:
Originally posted by Nobody:
As long as the buyer meets the terms of the signed contract, the bank must honor the contract. |
Thanks. So the buyer can't back out either, right? |
The buyer can always back out if they are willing to walk away from their earnest money.
Can you talk to the bank? It does depend on whether there is a contract of mutual acceptance, but I'm guessing there are a myriad of ways the bank can squirm out of the deal if they really wanted to (and didn't have scruples about doing so). |
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07/15/2009 01:02:26 PM · #8 |
Originally posted by GeneralE:
Originally posted by Phil:
I'm willing to go 10 grand more in a cash sale for the property ... |
Can I point out that this is basically how the "housing bubble" which recently collapsed was initially inflated? Why not ask the bank if they have any similar properties available and save the ten grand for the renovations/repairs which will likely be needed? |
If it is a cash sale or someone borrowing within their means then it has nothing to do with the current credit crisis. That was brought about by people spending more than they earn on a consistent basis, and the selling or poor quality debt mixed in with good quality debt. |
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07/15/2009 01:09:08 PM · #9 |
Originally posted by DrAchoo:
Originally posted by Phil:
Originally posted by Nobody:
As long as the buyer meets the terms of the signed contract, the bank must honor the contract. |
Thanks. So the buyer can't back out either, right? |
The buyer can always back out if they are willing to walk away from their earnest money.
Can you talk to the bank? It does depend on whether there is a contract of mutual acceptance, but I'm guessing there are a myriad of ways the bank can squirm out of the deal if they really wanted to (and didn't have scruples about doing so). |
That's the main thing. I'm sure the bank CAN get out of it but just wanted to make sure it was on the up and up. I want to do the right thing by not allowing them to "worm" out of it, but hoping that they can just legally say, "We are now not accepting your offer". That's why I'm not asking them this question. :D |
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07/15/2009 01:13:25 PM · #10 |
Originally posted by Phil:
Originally posted by Nobody:
As long as the buyer meets the terms of the signed contract, the bank must honor the contract. |
Thanks. So the buyer can't back out either, right? |
If the buyer has removed all their conditions then they can't back out. If they haven't removed all their conditions then they can indicate that they are not in a position to remove them (by the date set in the contract) and back out and get their deposit back.
At least that's how it works here. |
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07/15/2009 01:44:43 PM · #11 |
| if either party demanded in court that the other party honor a valid contract, it would be upheld. So if the bank took your offer, the current buyer could sue. |
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07/15/2009 01:57:11 PM · #12 |
Thanks for all the replies. I appreciate them.
I guess what I'm getting is what I pretty much figured in the first place. Since I cannot see the contract terms, when I offer the money (and the bank accepts it) I'm going to have to just assume they cancel the deal with the other buyer legally/ethically/morally/etc. |
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07/15/2009 02:00:30 PM · #13 |
Originally posted by rob_smith:
Originally posted by GeneralE:
Originally posted by Phil:
I'm willing to go 10 grand more in a cash sale for the property ... |
Can I point out that this is basically how the "housing bubble" which recently collapsed was initially inflated? Why not ask the bank if they have any similar properties available and save the ten grand for the renovations/repairs which will likely be needed? |
If it is a cash sale or someone borrowing within their means then it has nothing to do with the current credit crisis. That was brought about by people spending more than they earn on a consistent basis, and the selling or poor quality debt mixed in with good quality debt. |
I'm talking about people irrationally bidding up property prices above their "true" value -- people are now underwater because the values have fallen back to what they would have been had people not had excessive amounts of "cheap money" available to bid $300,000 for a $220,000 property ... |
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07/15/2009 02:16:02 PM · #14 |
Originally posted by GeneralE:
Originally posted by rob_smith:
Originally posted by GeneralE:
Originally posted by Phil:
I'm willing to go 10 grand more in a cash sale for the property ... |
Can I point out that this is basically how the "housing bubble" which recently collapsed was initially inflated? Why not ask the bank if they have any similar properties available and save the ten grand for the renovations/repairs which will likely be needed? |
If it is a cash sale or someone borrowing within their means then it has nothing to do with the current credit crisis. That was brought about by people spending more than they earn on a consistent basis, and the selling or poor quality debt mixed in with good quality debt. |
I'm talking about people irrationally bidding up property prices above their "true" value -- people are now underwater because the values have fallen back to what they would have been had people not had excessive amounts of "cheap money" available to bid $300,000 for a $220,000 property ... |
Cash sales had nothing to do with the housing bubble nor did the housing bubble have anything to do with my question.
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07/15/2009 03:02:50 PM · #15 |
Originally posted by GeneralE:
I'm talking about people irrationally bidding up property prices above their "true" value -- people are now underwater because the values have fallen back to what they would have been had people not had excessive amounts of "cheap money" available to bid $300,000 for a $220,000 property ... |
Plus they didn't quite do the homework on their 3/1 interest-only balloon payment ARM... |
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07/15/2009 03:05:32 PM · #16 |
Originally posted by DrAchoo:
Originally posted by GeneralE:
I'm talking about people irrationally bidding up property prices above their "true" value -- people are now underwater because the values have fallen back to what they would have been had people not had excessive amounts of "cheap money" available to bid $300,000 for a $220,000 property ... |
Plus they didn't quite do the homework on their 3/1 interest-only balloon payment ARM... |
Ding.
We have a a winnah!!! |
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07/15/2009 03:30:39 PM · #17 |
| I am sure the bank would have to honor the original contract but you can always give the bank a contingent offer that would be in place if the sale did fall through for some reason. |
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