Realtors obligations

[kecurb]

What is the name of your state (only U.S. law)? New York

We ( I and my brother) presented an offer on a house that was well below market value. The house (a double) needs work, which we are willing to do. I intend to live in one flat and my brother in the other.
We signed the offer on a Friday evening after our agent told us that there was another person presenting a bid on the house the following morning. The house had been on the market for rougly a year. Even though we felt the other "buyer" was bogus, we bid $49k CASH on a $48k price with no contingensies.
It's been over 2 weeks and we have not gotten an answer from the seller, described to us as a "bank". We researched the local tax authority and Internet and found that the "bank" was a major sub-prime mortgage broker that had filed bankruptcy in 2008. We also found that there are many lawsuits against that broker.
Question 1: Is it likely that this house is unsaleable because it may be tied up in the seller's bankruptcy? Our realtor hasn't been able to get this information.
Qusetion 2: Is it reasonable for the seller or the agent to 'sit on it" for so long. Twenty years ago in Buffalo there was usually a clause in the purchase offer requiring that the seller present the offer immediately and the seller answer within a reasonable time period like 24 hours. I did not see such a clause in our offer. I have a feeling that the seller's and my agent are actively looking for another buyer who can outbid us; holding out my offer as incentive for another buyer to bid higher. The comparative houses on the street are selling for $89k with improvements made. Can we somehow push the agents along so they can get a decision?
Question 3: If we do get (buy) the house, we're thinking that our title insurance would protect our interest, considering the bankruptcy. Am I correct?
Thank you.

[JETX]

Originally Posted by kecurb

Question 1: Is it likely that this house is unsaleable because it may be tied up in the seller's bankruptcy? Our realtor hasn't been able to get this information.

Likely?? No.
Most banks have their assets purchased by other institutions when they fail. You need to find out who the CURRENT owner is of the property.

Qusetion 2: Is it reasonable for the seller or the agent to 'sit on it" for so long.

Simple answer... until your 'offer' is signed by all parties, it is NOT a contract. Your agent should be talking with the REO department at the OWNER (bank).

Can we somehow push the agents along so they can get a decision?

Yep. Have your agent send a 'withdrawal of offer' to the sellers agent (or REO department). Then you can resubmit another offer to include a specific deadline for a response. Of course, there is no obligation for them to, but at least you will have a 'clock' on your offer.

Question 3: If we do get (buy) the house, we're thinking that our title insurance would protect our interest, considering the bankruptcy. Am I correct?

Your title insurance, if they can get a CLEAR title, should protect you against any claims to the property.

[kecurb]

Thank you for the advice.