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The owner is the one listed on the deed and the lender is the one who holds the note. If the offer never gets past the owner (for whatever reason), the bank can't negotiate or approve a short sale. When the bank owns the home after a owner has defaulted, it is called a foreclosure.
As mentioned the seller accepts the offer but you must read the short sale addendum ......The seller and the bank can continue to receive offers up to the sellers lender accepting the short sale...Now we look for the highest and best offer , sometimes it is a lower offer with better financing terms...as a listing agent our fiduciary respnsibility is to diminish as much as possible our sellers deficit...Do we submit all offers to bank? No, but the sellers are aware of all offers...On occasion some banks have required that we submit all offers......Frankly most of the banks are so disorganized and the confusion it would cause to send all offers would bring would cause more harm to our client. Most just want the best and highest offer. If we submit an offer and then another one comes in that is substantially higher than what was submitted that would decrease our sellers liability it cannot be ignored.. we always go back to the original offer and apprise them of such as a courtesy if they can up the ante.....We have had occasions where the bank does not want to look at any other offers depending on where they are in the process as a higher offer may not offset their penalties and loss for closing at a later date.
I have purchased a short sale myself last fall and did very well with it. I would be careful to search for agents who call themselves "experts" in this field. The listing agent for my property had called her self a short-sale expert on her website though she had not much of an idea of what she was doing.
In a short sale only one offer at a time. Many agents are not aware of this, though it is a regulation.
To your question: the owner can agree or disagree to submit the offer to the bank. If I was a buyer I would definatly put a clause in the contract that the owner has to give a response back in couple of days. So in case he/she is not going to submit the offer to the bank I can ove on.
Let me know if you have more questions about short sales. I am happy to answer them
That explains why short sales take a while. So, best advice is get an agent who is familiar with short sales?
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In a short sale is it the bank or the current owners that approve a offer on home?
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