Very upset about attempted purchase, anyone run into this?Corrupt Realtor or bank

Buying & Selling Real Estate
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Very upset about attempted purchase, anyone run into this?Corrupt Realtor or bank

Eric D.
Investor · Milton Florida · Member since 2010 · 51 posts · 12 votes

So I've been looking for a few months, put in a few offers with a Realtor and nothing really worked. Last Friday I saw a house that fit all my criteria and called the listing Realtor up, (which is the same guy I was dealing with before)

I got off work early Friday looked at the house, and put in an offer on it at 5pm. FYI: This is a Wells Fargo foreclosure he said they were accepting owner occupied now and next Wednesday they would accept investor bids so I wanted to move quick.

Timeline of events:

Friday: 5pm put in offer at list price as owner occupied, he said I might hear something that evening.


Monday: I called him at the end of day because I had not heard anything, he said let me check the website,The bank asked for highest and best offer since there was another offer, so I raised my offer a bit.

Tuesday: He called me and said the bank had accepted my offer as the highest and best offer but the closing date had to be within 45 days, he said no big deal, you got it i'll resubmit with a new closing date(this was never discussed not sure why he put the date out so far?)

Wednesday: I called him in the morning and he said it was all done he just had to submit a non relative form, I asked him what else I needed to do he said nothing, he would forward paperwork to my bank and they would start working on it. So I called my wife and shared the good news, then I called the bank I got pre-approved thru and let them know and that my Realtor would be sending documents over.

Thursday(today) He calls me and says the bank is now looking at other offers and if I want to stay in the running I need to submit a new higher offer. I let him know how i felt about this he said well let me call Wells Fargo and see what the deal is. Calls me back and said well it was approved but a supervisor didn't approve it.

I find it very unprofessional how this played out, I'm not sure if the Realtor has an investor friend that might be kicking him back? or if the bank is just greedy for more money? Have you guys run into this?

Sorry its so long I just feel I was wronged...

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y

Did you ever actually get back a signed contract? If not, you have nothing. The agent saying verbally it was accepted isn't the same as an actual contract.

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  • Eric D.
    OP
    Investor · Milton Florida · Member since 2010 · 51 posts · 12 votes
    12y

    Also, he's a dual agent on this which I've never done. Does he work for me or the bank?

    0Reply
  • Eric D.
    OP
    Investor · Milton Florida · Member since 2010 · 51 posts · 12 votes
    12y

    Should I call wells fargo?

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    12y

    They got you hooked , I went thru the same thing 2 years ago , Foreclosure advertised at $ 160K ,Offer was accepted verbally at the full advertised price , 2 weeks later the bank comes back wanting $ 175K . Well I wasnt going there , I told the RE agent resubmit the offer at $ 150K . She did ............... 2 years later the house is STILL bank owned , now there is a hole in the roof , the AC unit is gone , and the basement has a foot of water in it ( can see that thru the broken basement window) probably molded out now .

    Keep looking ......

    1Reply
  • Account Closed
    Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    12y

    don't take it personally, and don't believe you have an approved offer until you have a contract in your possession in which the seller has signed on the line that is dotted. don't blame the realtor, he's just the messenger. if youre paranoid, become a realtor yourself to take him out of the equation.

    2Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    Did you ever actually get back a signed contract? If not, you have nothing. The agent saying verbally it was accepted isn't the same as an actual contract.

    2Reply
  • Eric D.
    OP
    Investor · Milton Florida · Member since 2010 · 51 posts · 12 votes
    12y

    No I didn't sign a contract, was just going on his verbal word... which I guess is nothing anymore. Thanks for the advice, lesson learned.

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    This is why you need to find a buyer's agent to work for you. If this kind of things frustrates you, you'll be endlessly frustrated making offers on REOs through the listing agents.

    You'll hear people say that the agent wants the full commission so is more likely to work with you. It's not true where I am. Most REO agents here won't even return an buyer's call. They have no interest in working with buyers. Dual listing agreements are for special circumstances, IMO. This doesn't appear to be one of them.

    Find yourself an experienced agent that will submit your offers. You'll be so much happier, trust me.

    2Reply
  • Kyle Smith
    Rental Property Investor · Denver, CO · Member since 2013 · 33 posts · 12 votes
    12y

    Eric,

    Jon is correct in this. Without a signed offer from the bank this was never approved. I've dealt with many short sales and REO's (my own home was a ss) and this is typical of the way many banks work.

    I wouldn't blame the realtor, but just FYI . . .my last ss took over 6 months to get a signed contract from the bank.

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    12y

    Eric it depends on what was in the contract.

    The purchase and sale should stipulate if you are just a customer of the listing broker. In that case they are performing ministerial acts.

    It sounds like from what you have written that the listing broker did nothing wrong. They simply load onto a website portal. The asset manager assigned to the listing has limited power in approving things. It sounds like the deal was good enough for the AM but they needed their supervisor for final sign off approval to give you back a written contract. These employees get paid on performance metrics. The supervisors will look at something that maybe a newbie AM has and then say let's see if we can get more from other offers or this person before accepting anything.

    Wells Fargo on an REO will not talk to you period end of comment. The AM's do not want communication with buyers. Even for listing brokers the AM's highly covet their e-mails and phone contacts and change them frequently.

    Until you have something SIGNED back by the bank you have nothing. Do not take it personal it's just how the game is played.

    No legal advice.

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