Backup to a Bank Owned? That and $3 Will Get You a Latte

avatarthumbnail.jpgOf course, if you actually own Confederate dollars and call sell them for current U.S. currency, then maybe you have something. Otherwise, you may as well use worthless paper to pay for an offer that’s in a useless position.

Bank owned listing agents, after the lender selects an offer, often tell everyone else that made an offer that theirs will be held as a backup (assuming you get any type of communication at all.) You’re not “the” backup. You’re simply “a” backup. And depending on the lender’s protocol, that may mean nothing at all.

Many lenders – Freddie Mac among them – require listings to be put back into Active status and a new round of offers solicited should an accepted offer fall through. So if you were one of the unfortunate dozens whose offer wasn’t accepted, you don’t get a Fastpass to the front of the line. You have to resubmit like all the other shlubs out there.

This was driven home this weekend to one of my buyers – and bless them for not minding when I write about them for the good of their fellow Canadians. We had written an offer at the end of July and that was the last we heard, not for a lack of trying – e-mail, texts and phone calls all went unanswered.

Fast foward six weeks and the same home came available again, presumably because the buyer didn’t qualify for their loan, or because the home didn’t appraise – these are the most likely culprits late in the escrow process.

We were told we were being held as a backup, but that didn’t mean a thing. We had to go and resubmit the offer just like we were starting from scratch. What happens this time around, nobody knows. Here’s hoping the asset manager, realizing they could have closed escrow a month ago had they taken the full-price cash offer, is a bit wiser in choosing the second time around.

Sometimes purchasing in the Phoenix real estate market is more a case of fortuitous timing than anything else … long-departed homes sometimes reappear and the swift have the rare second chance to buy. It takes more diligence than the traditional segment of the market but, in the rare cases it works, it’s often worth it.

[tags]Phoenix real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

1 Comment

  • whizzer 8 years ago

    Alright already, then I’ll just settle for the $3. and a latte. Wait a minute, I think you are “short” changing me on the latte.

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