What do you do if a listing agent delays presenting your full price offer on a new foreclosure listing?

Question

What do you do if a listing agent delays presenting your offer?
I found a foreclosure that just came on the market. My husband who is a new agent in another county presented this listing agent with a full price purchase offer along with loan pre approval. We scanned an emailed the docs to her.

We believe the listing agent is delaying the presentation of the offer in hopes of finding a buyer of her own (without co-brokering). She said she did not know when she could present the offer to the seller/bank because of weather conditions. Is making a phone call/sending a fax/email dependent on snow fall?

Is there any recourse for stalling??

I looked up the listing agent and she IS a broker.

she gave us the impression that the offer would have a better chance if it was not a co-broker sale. She offered to pay a referral fee but it seems as if she wants both sides to do anything with it.
Does he have to give up the buyer and commission to get this offer looked at.
BTW the buyers are my parents.

we're OK with the bank taking time to go through their process. We just want to see that the offer gets in so it can start. We talked to the listing agent/broker again today. She said she would submit it, but she sounded hesitant. At this point we don't know how and if we need to verify she really did.

Answer 1

There is plenty of recourse, and it involves reporting her to the MLS board, and filing a complaint with the state's Atty General's office.
She is in violation, and could lose her license.
Do remember that if this property is bank owned, then the wheels will grind very slowly. The offer will be reviewed by committee, have to have departmental approval, need legal approval, and if it is less than than the outstanding balance of the original loan, may require additional approvals.
You dont say how long youve been waiting. However, remember weekends dont count in a bank buyback. Under no circumstances should you contact the bank directly. Most banks have a conflict of interest policy that forbids the foreclosure department from discussing any transaction directly with a potential buyer, or buyer's agent. (It is to prevent any appearance of fraud, and or kickbacks).Should you contact the bank directly, it may prevent you from buying the property.
You need to state categorically to the agent that you insist upon co-brokering, as permitted by state law, and that should for any reason you not get this property, you will file a complaint with the MLS, and file civil suit for damages.

Answer 2

First off, she is not allowed to stall presenting the offer. It's required by the Realtor Code of Ethics that the offer be presented.

How do you know that the offer has not been presented? It typically takes over a week, and sometimes up to a month, to get an answer from a bank on a bank owned property.

As for offering a referral instead of a full co-op fee - if the property is listed in the MLS, the co-op that's being offered should be listed there. If she does not pay the full commission, then your husband will have recourse against the agent.

At this point, I'd make sure I had some of this in writing and then have your husband and/or his broker go to the listing agent's office and speak to her broker/manager. Something's screwy here.

Best of luck to you!

Answer 3

In most states the listing agent has 24 hours to present the offer. There should be NO excuse not to present a full price offer. Banks are usually 9 to 5 Monday through Saturday so expect a little delay but it seems clear that this broker want to have her cake and eat it too. Contact the bank directly and find there foreclosure dept and whom to speak to. Also contact the real estate department in that area and make a complaint, if she is not going to present it. Usually I would suggest calling the Broker of the company but since she is the broker, not going to help. If it's an a exclusive listing, not in the MLS, she has the right not to pay if it is disclosed.
Licensed Realtor in Arizona

Answer 4

While this agent gave you a poor excuse for not submitting the offer, I would not get overly excited about the delay in sending it in. I gather than your husband has not dealt with lenders and foreclosures previously. The lender involved, if it is one of the larger ones, may not even LOOK at the offer for a week after it arrives. It depends on how busy their department is. It is not at all uncommon for the lenders to take their good natured time in getting to offers tendered.

Furthermore, the agent works for the seller (lender). If she is aware that there is another offer as good or better than yours pending, she is obliged to inform the sellers of that potential existence. The agent is bound to represent the best interests of the seller, and that is part of the job.

Of course the agent involved should not delay in presenting the offer, but be aware that a prompt presentation isn't necessarily going to get an acceptance of your offer.

Answer 5

That Broker is bound by law to present any and all offers to her client in a timely manner. You should make sure, that she/he is truly delaying this offer. If so I suggest you contact the state and file a complaint.

Answer 6

wow call the real estate commission for your state...the weather shouldnt be an issue if the bank is up and running that owns that house..i would be hot...your husband should know who to call cause..he is an agent as well

Answer 7

She's shopping the offer. Call her broker - if that doesn't work, Call the RE Commission.
Good luck.

Answer 8

you should ask why did he delay it.