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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28021
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I have been trying to buy a house that has been foreclosed

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I have been trying to buy a house that has been foreclosed and vacant for a year and a half. Asking price is $309,000.00 and we placed an offer of $310,000.00 with an approval letter for a VA Loan from our lender. The contract we signed stated we wanted an answer in 72 hours which would have been last week Wed. The bank came back on Wed and said they would need till Monday to give us an answer. Today is Tuesday and we have now been told that the bank does not want to honor a VA loan and wants to wait to see if someone will put in a bid using a conventional loan. Can they do this since the original contract was accepted knowing it was a VA Loan.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. I certainly understand the situation and your concern. However, based upon what you stated above, I cant seem to find in the list of events, when the contract was accepted by the bank. Can you please clarify this for me? Thank you.
Customer: replied 4 years ago.

We signed the contract on Friday 09/06/2013 and it was submitted to the bank 09/09/2013. It has not been accepted because the bank does not want to work with a VA loan and wants to wait to see if anyone will submit a bid using a conventional Loan.

Thank you for the additional information. I am sorry to say but the bank certainly does have the discretion to wait and see if any other offers come in. The bank is the owner and seller, just like anyone else who owns a home. As such, they have the ability to decide on the buyer and the type of financing which they are willing to accept, to get the deal done. The reason for this is that certain loans take more time then others and they may feel that the VA loan could cause additional delay or there may be problems with you obtaining funding. Even though you also submitted a pre-approval letter, there are stipulations which need to be met. What is very odd in a situation like this, is that the home has been vacant and list for sale, for a year and a half. I would think that the bank just wants to get rid of it already. Notwithstanding, the bank does have a right to accept or reject your offer and that can certainly be based upon the type of funding or any other offers which they may want to accept. Until they accept your offer, there is no valid contact, even though your offer was above the asking price.

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