Question by GAZ B: repossesion offer been accepted ?
We recently viewed an house that was a repossession and offered the estate agent the full asking price in which they put it over to there client and the offer was accepted , our mortgage was accepted and the surveyors are going out to it over the next couple of days. Someone mentioned I could still be gazzumped as the house still has to be advertised for 14 days even though my offer has been accepted. me and my wife are now on edge and will be really upset it slips through our fingers over the next 10 days remaining. Can the seller still accept an higher offer from someone else even though we have agreed to pay his full advertised asking price for the property and if so is there anything we can do to stop us from being gazummped
Best answer:
Answer by Dagger_SA
Have you paid an Earnest deposit? That secures things, but not absolutely. The seller can still back out, but they have to give back the Earnest deposit.
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No, if you have a signed contract they can not back out to sell to someone else. They can take back up offers though, just in case your funding does not go though.
You don’t say where the property is located, but from your posting it seems that you have been negotiating for a bank-owned property acquired through foreclosure. Correct?
Have you spoken with your agent about your concerns? If you do not have an agent representing you in this transaction, I suggest you find out what the listing real estate agent’s perspective is.
If this is a foreclosure property there is probably a rather lengthy document that you signed as well as the usual contract for your area. This addendum is the bank-owner’s statement of conditions to the purchase. Some banks have 2 or 3 shorter addenda that are required. In any event, you should have reviewed these carefully before signing to understand what your rights and obligations are in this transaction.
Whether you read them prior to signing or not, you should read them now to see if there is any mention of required marketing time, or the bank-owner’s right to terminate the contract.
If the house is owned by HUD, there is a period of time – 10 days, I believe – when the property is actively offered for sale and NO offers are reviewed until the 10 days have passed. At that time, all submitted offers are reviewed and the most acceptable one is accepted or negotiated. Sometimes no offer is deemed acceptable and the property is left on the market for sale. Any incoming offers are then reviewed on a daily basis.
I recall that Fannie Mae used to require that a property “be exposed to the marketplace” for 48 hours before any offers would be reviewed and negotiated.
It would seen that if your offer has been accepted and the fully executed contract has been delivered to the Title Co (or closing company), then the required marketing time has been satisfied or waived by the bank-owner.
Still, you should verify this with your agent (I hope you have one) or the listing real estate agent.
Good luck