Upcoming Foreclosures - Can a bank refuse to look at an offer on a bank-owned foreclosure?

Can a bank refuse to look at an offer on a bank-owned foreclosure?

A friend of mine has tried to submit an offer on a home that is bank owned. The bank has accepted an offer already, but my friend would like to submit a back up contract. The agent working with the bank has said that he will not submit any other offers as a back up because the bank does not have to look at any additional offers made once they have an accepted contract. Is this true? The property is in Georgia. There is currently an accepted contract on this property. I know that on property that is owned by an individual, the agent has to present ALL offers even if there is already an accepted contract. So I am just trying to find out if when a property is bank owned, the agent is exempt from having to present any other offers? Thanks to everyone who gave informative information. I just spoke with an agent who works with Wells Fargo on their foreclosed properties. He says that it is Wells Fargo's policy that if they have an accepted contract, they will not consider any other offers because they are "proceeding ahead with a positive attitude that the deal will close successfully". I, personally think it would be in their best interest to have a back up contract, but I guess due to the extra paper work a back up contract would create, they would rather not fool with it.

Public Comments

yes it is true - The house can still be shown but no other offers can be presented till the one they have is declined. I assume this is a short sale and they are a nightmare. (should be called a long sale)
The bank owns the home. They can do anything they want with the home and they don't have to consider your offer if they already have a plan regarding what they want to do with the home.
Once the property is in pending contract, the real estate agent can no long accept offers or show the property. (Pending contract = bank accepted offer). Your friend shouldn't take it personally.
Yes, this would be true. If the first one falls through they just put it back on the market
All offers must be presented.
Sounds like they have accepted an offer that is cash and no contingency's. Most of the time the bank will look at another offer if they have a deal that is contingent on financing.
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