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If I made a higher offer on a short sale can the bank ask the first offer to go higher than mine?

  • October 29 2011 - Duluth
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Answers (7)

Profile picture for Robinsz
Thank you Sunnyview.  We know how much we would go up to, but the bank isn't even contacting us to do so.  Not sure what to do.  Our agent has been trying to call the bank, but is not getting any response.  As a potential buyer can we go to the mortgage company directly and ask about this property?
  • October 30 2011
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Profile picture for sunnyview
The banks wants to get the highest price possible so they will go back and forth until they feel that no buyer is willing to offer more.

Do not get caught in a bidding war with the other buyers. You cannot see their offer and they cannot see yours. Bidding like that often means that people overpay. Set the price that you are willing to pay and stick with that.
  • October 30 2011
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Profile picture for Robinsz
Thank you all for your answers.  We put down escrow money a couple months ago and signed a contract.  Supposedly there was a previous offer aand we came in higher.  The bank is now going to the first party to come in higher than us.  They did not contact us to do the same.  We just don't know where we stand and if they can do this.  Any other suggestions?
  • October 30 2011
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If your offer has been accepted by the sellers and you are in escrow, the bank can't negotiate with any other parties. However if the property is still in ER status, the listing agent is obligated to present all offers to the sellers.
One exception: In case of a HAFA short sale, all offers will be directly presented (uploaded) to the bank.
  • October 29 2011
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When you make an offer on a short sale the bank can come back and ask all parties to come in with their "highest and best".  
  • October 29 2011
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I agree with the first answer with one noted exception. If the bank has agreed to the first offer, and is under a binding contract with the first offeror, then your offer would be nothing more than a backup offer.
  • October 29 2011
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HI Robinsz,
When you make an offer on a short sale the bank can come back as they often do on a bank owned home and ask all to come in with their "highest and best".  Usually the way short sales are handled is the home owner accepts one offer and it's sent to the bank for approval. If the bank doesn't like the price offered they will counter the offer.  Some banks do want all of the offers and they do have the right on the short sale addendum to continue to look for offers.  Did the sellers send your offer to the bank or are they just looking at them at this time?  That might play a roll in what you can expect.
We help a lot of buyers and seller with short sales, if you have any other questions you can give a call or email anytime.
Lisa Doyle
J. Rockcliff Realtors
[phone and hotlink removed by Zillow moderator]

  • October 29 2011
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