We recently had Wells Fargo negotiate and then verbally accept an offer for a foreclosure property on Friday. The bank would not sign the contract on Friday. On Monday, we find out that they won’t commit to our offer because they got another offer over the weekend. Apparently there is nothing we can do about it. I assume this is not common, but are some banks worse than others? They also made us prequalify with them before submitting an offer.
We tried submitting an offer for a short sale house. The bank told the agent to list it at $19k. They had a few quick offers and then decided they were going to pull it off the market and then relist for $35k. Some banks are good to work with; others are difficult. As with anything in REI, if it’s not in writing - it doesn’t exist.
Funny thing is, realtors tend to have you sign a document, say an addendum, then assume it’s in effect when you haven’t seen it signed by the bank rep. They’ll say “don’t worry we have a good relationship” and act put out when you demand it.
Just part of the new game some lenders are playing.
The pre-qualifying is just to make you reveal info you shouldn’t have to. They review it and say this buyer can well afford to pay more, Your cutting your own throat if you play along. It’s like the car dealer that finds out what you can pay, and then slams you into a higher priced car then you went in for, or a more profitable car loan.
My response is I will submit that info if your going to finance the property with decent terms for me after we have a signed agreement. You can put that in writing for me, otherwise my proof of funds letter is more than sufficient to insure the deal will close and you will receive payment. I’m not going to show my cards until I’m called.
I have a long memory and so do others, and I hope you guys do too. These lenders will get what they gave when times change and they’re knocking on the door wanting business. At this point I start targeting their depositors and try to put them into investments that more then double what they are getting at the bank. Banks need depositors, basic banking.
Many years ago a large long time lender in the S.F. Bay Area found that out and had to close their doors forever when enough Realtors blacklisted them and watched them sink.
I do owe them for one thing however, thanks to them screwing my wife and I over, I studied the subject for my own education and as a result got into the real estate business and out of corporate life.
I can’t blame them for shopping an offer around trying to cut their losses even more, but don’t say we have a deal then renege, verbally or otherwise.