Answers (14)
- Linda Strasberg, "L Strasberg"
- Contributions:2563
Are you the first offer or the second offer? Were you given the right of first refusal when you learned there was another offer being presented?
- Shawn Sullivan, "Shawn Sullivan"
- Contributions:36
I think depends on the listing agent. Typically I try to get an offer that I feel the bank will accept based on many different factors. I then go to P&S and only show it for back up. I want to make sure seller has a serious buyer and I give some assurances to the buyer which makes all parties satisfied.
- Susan Hegdal, "Susan Hegdal"
- Contributions:2
The first signed offer is in first position and the second offer is considered a backup offer. The first would have the right of first refusal if the second offer were stronger. Patience is the name of the game with Short Sales.
- Angie Boggeman, "angie boggeman"
- Contributions:518
Either neither were signed by the seller or 1 should had been signed and the other accepted as a bank up. Then both of them could had been presented to the bank for lien holder approval.
- Christine Smith, "CantonMABuyerAgent"
- Contributions:18
It does happen but it is not the best practice. A good buyers agent will make sure that the listing agent is only going to submit one to the bank. The buyers agent should do their homework first to determine if the listing agent has any experience in dealing with short sales and if it has any chance of being approved at all. There are certain questions that can be asked and if the listing agent cannot answer them satisfactorily, then I advise my clients to move on.
- workabee
- Contributions:1073
Banks want the best offer. Short escrow, all cash, no strings will win over a higher offer. Broker's opinion delay is to cover them and make you sweat. Hang loose and wait.
- Lori Akers, "Lori Akers"
- Contributions:2
Dan, all lenders handle short sales differently. It is not uncommon for more than one offer to go to the bank, but more common for just one to be sent. The lender is really not the one to select the better offer. Usually they are relying on the expertise of the real estate professional to decide which is the stronger offer. The listing agent needs to make a stand. The best offer is NOT always the highest offer though. There are other issues, including financing and terms that need to be considered as well.
- finny6944
- Contributions:16
So I guess what happened was the owner did not sign either offer and the agent sent both offers to bank. Is that what you think happened?
- Justin Ruzicka, "FortMyersRealty"
- Contributions:39
sadly way to common. however there is a difference between a Contract and an Offer. If the Seller has Signed either of the Offers, they become a contract, You can not sign two contracts, without priority. If they are signed, with a short sale addendum allowing for back up offers, then one of the offers is first in line and the second or "weaker" offer is second in line.
Ps. If you have found this to be a helpful and resourceful answer please mark it as best answer. Thank you
[Links removed by moderator]
- Diab Mustafa, "Diab1"
- Contributions:5
In a short sale the bank works with only one offer at a time . You better check with the Realtor and make sure which offer is the bank working with.
- Heidi Zizza, "Heidi Zizza REALTOR"
- Contributions:724
Yes Dan it is very commin. Keep looking!
- Michael Leighton, "Michael Leighton"
- Contributions:55
You should be looking at other homes. It can take months to hear back from the Bank. Hedge your bets.
- finny6944
- Contributions:16
Hello Pasha,
Thanks for the input. I just thought the bank would decide at least which offer they wanted to move forward with. I am in a lease until june anyways, so maybe the time is good. Im just not sure if I should be looking at more homes while I am waiting.
Thanks for the input. I just thought the bank would decide at least which offer they wanted to move forward with. I am in a lease until june anyways, so maybe the time is good. Im just not sure if I should be looking at more homes while I am waiting.
- Pasha Missaghi, "Pasha Missaghi"
- Contributions:40
Dan,
usually banks have to do their analysis on not only offers, but the loss on their investments as well. just like any other offers, not only they look at the dollar value of the offer, but also the likelyhood of closing and closing early. typically in a shortsale, banks make a decision quick on which offer they would like to offer, but its the process of escrow which takes anywhere from 4-6 months. remember, banks don't own the property yet and that is why REOs close much faster than the short sales, there are more factors in a short sale that they need to look at....
hope this helped
usually banks have to do their analysis on not only offers, but the loss on their investments as well. just like any other offers, not only they look at the dollar value of the offer, but also the likelyhood of closing and closing early. typically in a shortsale, banks make a decision quick on which offer they would like to offer, but its the process of escrow which takes anywhere from 4-6 months. remember, banks don't own the property yet and that is why REOs close much faster than the short sales, there are more factors in a short sale that they need to look at....
hope this helped
Is it common to have two offers go to bank on a short sale/
I am a first time home buyer and currently have an offer in on a house in massachusetts. There is also another offer in as well. My agent said the bank received both offers. The bank just ordered a Brokers opinion of value.
My question is this, when does bank decide which offer is going to go forward, and why does it take so long to decide which offer is better. Wouldn't they just want the highest offer, or whichever loan could close the easiest? Thanks for any help.
Dan
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.