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06-01-2009, 11:58 AM
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If a bank rejects your offer on a foreclosure, do
they have to give you a written rejection reason? There were three bids on a foreclosed condo. The bank took a lower full cash offer over a higher 30% down convention loan application. The buyer's agent has not been able to get a reply either verbal or written from the bank representative, in fact he can't even get a phone call in or returned. What are the California regulations about a rejected offer from a bank?
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06-01-2009, 02:38 PM
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I think the reason is quite clear. A cash offer is much more preferable than a loan. Cash is much quicker to close on because there is no bank required appraisal that could end the deal if it comes in too low, no bank concerns about property defects, no underwriting and such. A deal with the bank can look good and then the day before closing the bank can say, "Sorry, we can't approve the loan" whereas cash and a contract, the deal is pretty much done.How did you find out that a cash offer had been accepted?
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06-01-2009, 02:50 PM
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There are no regulations about notifying you about your offer being rejected. It is common courtesy for the list agent to give your agent (buyer's agent) a call and let them know that the bank went with another offer but notifying the rejected party is not mandated by law.
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