Property Foreclosing on Friday - Offer Flubbed by 2nd Position HELP!
We made an offer on a house about to be foreclosed, short sale. The listing realtor said the owner accepted the offer, but the bank said the 2nd mortgagee wouldn't accept the offer so it will foreclose on Friday. Now the realtor (dual agency) says they won't accept the 4% the bank is offering them so they are throwing a wrench in the deal too. We are topped out at what we can pay for the property, and as solid cash buyers, we thought we were in good shape.
This was to be the replacement property in a 1031 exchange, so I don't think I can buy it at the courthouse, can I?
Any creative suggestions would be greatly appreciated.
Also, any advise on what it costs the bank to foreclose from this point would be appreciated.
Sad & Distraught 
Tell the Realtor to take a hike....then go get the house at the auction....make sure that you are for sure bidding on the first note and laugh at the holders of the second when you go purchase the first and wipe out thier crappy little second....smirk. I think that banks are really ignorant sometimes...they should have made a deal. you would also have a leg up on all the other bidders as you have been inside the house and know if it needs any repairs. go get it on friday and good luck.
Any idea how much $$$ I need to bring to the auction Friday? We are in Washington State.
Thanks for the advise btw!