Expert: Dick Dennis - 2/21/2008

Question
QUESTION: Hello,
Just a quick question!  I put an offer in on a preforclosure home.  I know that the bank has gotten the offer.  After thinking about the house more, I really must have this house!!  Can I resubmit a higher offer?  I know that there is already another offer on the house and I don't want to lose it. I am also paying cash, will that make a difference? Thanks for your time!

ANSWER: Perhaps you are confused, Darlene. A "preforeclosure" home is one in which the owner is still in it (or maybe they have given the house up to the bank but then it wouldn't be a foreclosure of any kind because the owner gave the bank a deed) and his payments are in arrears. You would have given your offer to the owner or the agent who had the house listed. Whoever you gave your offer to you should ask them how your offer sits at present.

If you gave an offer to the bank the house was A FORECLOSURE. The bank had already taken the house back.

One thing you must learn, Darlene, and that is never act so desperate to get a house that you wind up paying more for it than you probably really needed to. Keep this in mind: She who wants it most, loses.

Besides, banks are taking their time these days about answering offers. They are really playing the negotiation game pretty well by making the buyers nervous that they may not get the house. If you want to resubmit a higher offer, that is your choice, but I will bet they will take their time about answering you anyway. In this negotiation game, they make it look like there is a dozen buyers and they all want to pay higher prices. That's worse than an auction.

I suggest you just wait and be very patient. If you don't get the house there are many houses out there just as good and maybe with a better price. Just be patient. I wish you well.

Dick Dennis      dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Thanks for getting back to me so quickly. From my understanding I was very, very close to the other bid (a little lower). Does it make a difference to the bank that my offer was cash and the other was not?  Thanks for you time!

Answer
Probably not, Darlene, because the other person is going to get a loan that will wind up giving the bank all cash anyway. If, however, you were giving them ALL CASH and closing real fast, then I would say you might have a good chance. I wish you well.

Dick Dennis