Thoughts on Situation? (REO Offer)

**walked** · 03-27-2009, 08:02 AM

We have an REO property that we made an offer on a short while ago. It's been on and off the market a number of times over the last 4 months, going back to an original list date of about 100 days ago.

Last Friday we made an offer, it has returned to the market for about a week prior to our offer. Ended up in a multiple offer situation.

List price was $175,000, and we wrote at $185,000 with a home inspection contingency.

The following Monday, they came back, had 5 offers on the property, we put in $193,000 as our highest and best. Now, to expand on the highest and best offer - our offer includes 20% down, conventional mortgage, not asking for any repairs or concessions, etc. Pre-approved, proof of funds, and 2% earnest money.

That was this past Monday, and last evening the bank came back to us with an "as-is" addendum. (bank is Sovereign Bank, for reference). Our Realtor was a bit confused, as he stated he has never seen this addendum to be signed prior to a verbal acceptance on an offer (we have no acceptance yet).

He indicated that he thinks it was a ploy on the banks part for another round of bidding on the property, and we did up our offer to $195,100 and the bank accepted in the new offer.

I'm trying my best to be patient with this property, but at the same time, it is draining.

Anyone know what getting the addendum / disclosure about the property being "as-is" prior to having a verbal acceptance? I know it's standard practice for those addendums to be used, but not with this sort of time-line.

Please tell me what that likely means in a 5+ offer situation on a house! Thank you!

**Greg** · 03-27-2009, 10:14 AM

For the bank to be playing games with you in an effort to get more money would mean there is someone at the bank with some intelligence. Not likely.

The reality is you are dealing with an organization where nobody knows what is going on. The asset manager who is handling this property for the bank might have 600 properties they are working on, they have only been doing this type of work for a couple of months and they are probably not getting much more than minimum wage because all the money goes to the executive bonuses.

The most important thing for a buyer when looking at foreclosures is patience. Hang in there.

**walked** · 03-27-2009, 10:24 AM

Greg,

Thanks for the input. If this isnt games; what do you suspect in the grand scheme of things? Trying to weed out those potential buyers that arent going to sign the addendum pre-emptively (this seems illogical), or do you think we likely have it, but theyre just overburdened and as a result taking plenty of time to get back with us?

Trust me, I'm trying to be as patient as humanly possible, but we've got other properties we are willing to write on IF we lose this one, but we want to be sure first!

**Greg** · 03-28-2009, 04:30 AM

You are just dealing with an organization in total confusion full of people who don't know what they are doing being led by people whose only concern is their bonus.

Hang in there and if this one doesn't work then try another one.