Proper communication with seller (in this case the bank- it's an REO)

**themom** · 04-19-2010, 06:44 PM

I'm new to this forum, so I apologize if this has been previously posted (I looked but couldn't find it).

We're buying an REO. After putting in our offer and it being accepted (verbally) we asked for closing costs and they accepted. We did our inspection and some things came up (not huge, a few thousand dollars' worth is our guess), so we asked for some of them in writing. It's been almost 2 weeks since we sent them written notice of our request, and our agent finally tells us that their agent says that they will not do any repairs and they do not have to respond to us in writing. We don't feel too good about not receiving any written notice from the bank- and are a little suspicious. Nowhere in the contract does it say that they have to give us written notice that they won't do any repairs, but it does say that they have to give us some notice. Our real estate agent says she spoke to her manager who said that they're not required to give us written notice. The reason why we're a little suspicious is that our agent tried to convince us not to ask for closing costs saying that their agent told her that they had another offer that they would take but they we insisted and they still went with us. And also our agent very reluctantly put in the request for repairs after we quoted her the part of the contract that says that we're allowed to put in request for repairs (we know that they usually sell 'as is' but it's not a rule as far as we know- after all we didn't negotiate at all on the price and offered asking price).

Are we wrong to insist in getting a written response? Are we offending our agent if we insist on going against her recommendation (for the third time)? Are we offending the bank in asking for a written response? (they have asked for quite a bit of paperwork, including re-sending them documents typed that were initially partly written by hand by our agent).

Thanks for any insight you might give us.

The mom.

**maui** · 04-20-2010, 02:09 AM

This is merely my experience, so please take it with a grain of salt (not meant to be an authoritative binding statement), but in the past, I have not had any issues getting verbal notices into written form (it makes it easier to keep track and cover all your bases). I can't say that I would acted as your agent did in hesitating to put in the request for closing/repairs (her job is to advise, guide, and inform... with that information the client can make a decision), but obviously there are two sides to this story. Best of luck in your purchase and please post updates as your situation develops.

**Chrisopher Moltisanti** · 04-20-2010, 08:10 AM

Mom - You're not "wrong" in insisting getting things in writing, but you're (and your agent, who didn't explain how it works), should only be hoping you get things like repairs to be paid for by the bank of all entities.

I can not over state enough that banks are entities: They are machines, emotionless money generating machines. They don't care about you, your requests, your contracts. They simply want to get rid of this. I'm so surprised they even agreed to closing costs! Go figure! Closing costs! This is a rarity to say the least. I guess the asset manager was in a good mood that day or they didn't have any action on this property and took the best out of all they got: your offer. I'm not understanding why you'd need a negative in writing? The bank isn't going to change their mind. Having "No repairs will be paid for by ________" in writing is going to change things?

Your agent was and still is acting in your best interest, but needed at the time to further explain REOs and bidding. That's okay. She's probably new but went to her manager so she's not hiding anything. She's got nothing to gain by hiding facts. People who make offers on REOs, unless they're offering cash, shouldn't be asking for any take backs. You didn't say if you offered cash or your offer was contingent on your getting a mortgage.

Like this: I'm selling my car. One guy offered cash but doesn't have it right now.
Another guy has to borrow it and will get back to me next week. Another guy also has all cash but only offered me 80% of my asking. Another person offered 100% of what I'm asking but not only wants me to change the tires, but wash it and submit to him in writing (with my busy schedule, that that's what I'll do). Hmmmmm, I think I'll take the 80% cash buyer. Follow?

Houses are really no different. The seller (in this case the bank) may have had another bidder, at least that's what they told your agent, who was not only offering cash but also wasn't asking for take backs. My guess is they didn't have another bidder or they did and they weren't offering cash but for less take backs than you. So, the bank took the lessor of two evils just to rid themselves of this one of many thousands of properties in their portfolio, for this month.

Good luck and be patient. Your agent can not call the selling agent every day or "be more aggressive" with them. This will make them look stupid and will get you and them nowhere.

CM

**themom** · 04-20-2010, 09:18 AM

thanks for the replies. i feel better with our decision just to accept the verbal offer and move on. you're right that getting their refusal in writing won't do anything. it was just an extra assurance that the seller agent did in fact submit the request to the bank, but regardless of whether he did or not, they probably wouldn't have accepted to make them.

i'll keep you posted on how it moves forward.

**UWDForeclosureHomeReo** · 04-20-2010, 10:02 AM

I agree that your agent probably could have given you better info... but this is true of all banks - they just want to get rid of these properties as fast and as profitable as they can potentially manage.