Can a bank accept your offer on a house, and then back out?
February 32010
Not sure if that was the best way to phrase this question but ill explain: The house in interest is a REO property. Originally, we offfered on the house, it was accepted, we signed our portion of the addendums, and when we were waiting for the bank to sign their addendums the listing expired so apparently our offer was void. Then, we contacted the new listing realestate company, and made an offer, while we were waiting on the addendums to come back they called us and said that they did not want to do our fha 203k loan, and would drop the price by 10k if we did not. So we did what we could, and found a new route and the house would not be shown to any other interested parties. Then we get a call that the bank has recieved some cash offers during this time from people who never even got into the house. Since the cash offers were less but close to ours, they want to know our highest and best offer. What should i do? Is this even legal? Does it violate any fair housing laws or anything of that nature?
any help would be great!
Thanks
Yes, of course this is legal.
I do not know where you got the idea that property can’t be shown, but until there is a signed sales contract they are free to show and sell it to whoever they wish.
February 3rd, 2010 at 12:37 pm
Sure it’s legal, and it happens all the time. You didn’t have an accepted offer. THAT requires a signature on your offer from an authorized party at the bank. Everything you did was purely verbal, and is not binding in any way. Consider yourself fortunate that they gave you the opportunity to raise your offer to ‘highest and best’. They were not even required to do THAT.
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February 3rd, 2010 at 1:26 pm
Until both parties have a signed agreement they can back out. They never legally (on a contract) accepted your offer.
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23 years mortgage business.
February 3rd, 2010 at 2:16 pm
Yes, of course this is legal.
I do not know where you got the idea that property can’t be shown, but until there is a signed sales contract they are free to show and sell it to whoever they wish.
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February 3rd, 2010 at 2:52 pm
The bank has not agreed to ANYTHING unless and until you have a signed document.
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February 3rd, 2010 at 3:18 pm
The bank never signed the Agreement of Sale. This is no offer AND acceptance in writing.
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