Banks don't have to play fair…so Buyers Beware!

I have long ago sworn off representing buyers on Short Sale Transactions, otherwise known as the deals from hell that will not close. Today, I’m about ready to exit the REO (Bank Owned Property) market as well.  From listing agents who never return calls to Banks who do not respond for weeks, yep…I’ve just about had it.

My most recent tale from the dark side of REO sales:  Buyer makes an offer on a bank owned property.  The bank sends over it’s standard “Counter-Proposal” document which is just a code name for the “we can do whatever we want to you Mr. Buyer and there’s nothing you can do about it” document. 

Within this bank’s counter proposal was a a close date of August 15 which had been selected by the buyer.  Good. No problem there.  We knew the bank was selling the property “as is” and in this document was the verbage that the Buyer must obtain all inspections prior to signing the counter proposal because once the buyer signed the counter-proposal and the banks accepts it, the buyer’s earnest money becomes non-refundable.  Ok.

So, buyer completes his inspection at his cost and signs the counter-proposal.  At which time, I receive a call from the listing agent that “Ooops, the bank can’t close until October 15th.  Sorry”  Buyer can’t wait until October 15th and is feeling pretty used and abused by the bank who agreed to his August close date and instructed him to obtain an inspection at his cost within 10 days which he did in good faith, only to change the deal midstream and he’s out his inspection costs.

Can the bank do this?  Apparently.  So.  BUYER BEWARE.  It’s clearly written that nothing the Bank includes in it’s counter-proposal is enforcable until it is signed by the bank…even if you comply with everything they ask you to do within the counter-proposal…even if it costs you your hard earned money.  The bank doesn’t have priciples, Mr. Buyer.  Banks don’t have to play fair…so buyer beware.

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Amy Jones RealtorAmy Jones of the Amy Jones Group specializes in residential, vacation homes & cabins, as well as retirement communities in the communities of Ahwatukee, Chandler, Fountain Hills, Gilbert, Maricopa, Mesa, Paradise Valley, Queen Creek, Scottsdale, Sun Lakes, Tempe and the White Mountains communities of Pinetop/Lakeside & Show Low.