Currently in the final stages of closing on a bank owned property in Amador County in California.
I asked my realtor to ask for a price reduction on unforeseeable deficiencies on the house from our well, septic, termite and roof inspection. So my realtor talks to the banks agent and she tells us “I can ask for the reduction, but let your buyer know the bank may just decide to cancel the contract if they don’t want to reduce the price”.
So my question is for you brilliant people here on bigger pockets. Does this sound legit? Can they cancel the contract just because I asked for a price reduction?
Yes, they can. The banks are surprisingly inflexible when it comes to bank owned properties. If this was 2010 after the housing bubble burst you might find banks anxious to get the properties off their books, but that just hasn't been the case for several years. I'd still ask her to put in the request because it never hurts to ask, but be prepared for a 'no.'
Thanks for the reply Bonnie, yes I am %100 prepared for a no. I live by the statement “the worst thing that can happen is they say no”, so I always ask. But I was surprised because I might get a cancelled contract along with a no!
@Jacky Lieng While most REO addendums Do give the bank the right to unilaterally cancel the contract without cause....it is unlikely they would so, as opposed to just saying no, or even giving a little. This seems like a scare tactic by the listing agent to simply get it closed. I'd try.