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Answers (10)
- Leslie Newman, "Leslie Newman1"
- Contributions:60
I agree, it sounds as though your offer did not include a short sale addendum specifying that that additional offers only be held as backup. As a result, the listing agent is continuing to present offers to the lender and has no reason to. This can kill a short sale.
- Mark LeMenager
- Contributions:1714
Tim, in answer to your question because of search engines. You'd be surprised how a year old answer can still generate business.
- Tim Moore, "Kitty_Hawk_NC"
- Contributions:108
Since the original poster posted this question in Oct 2009 -- WHY ARE WE ANSWERING IT NOW? Even a Chase short sale has likely been completed by now.
Usually thier is an addendum that allows the seller to or not to accept aadditional offers. I require all buyer and seller I work with on short sales to not allow the seller allow additional offers. This just confuses the negotiator when thye review the bpo and financials. I would say no thanks and let the home come back on the market and resubmit. Rarely the banks on short sales will ask for best and final, they just decline or counter thier highest and best.
- Brad Officer, "Jax Realtor"
- Contributions:45
Your agent should have required only 1 contract be submitted to bank as a condition of sale agreement.
- firstfloor
- Contributions:19
Ben is right on! The fundamental difference between short sales and REO's is that in a bank owned listing the bank is the seller. So the listing agent has a fiduciary duty to the seller (i.e. the lender.)
In a short sale the listing agent has a fiduciary duty to the seller (which is NOT the lender), but NOT to the lender at all!
While it could be argued that a higher offer is better for the seller, that's not necessarily true. The correct procedure on a short sale is to accept one offer and submit it to the lender for approval. That's how the short sale process is designed by the lender.
It can definitely mess up the seller-accepted offer and successful short sale altogether to interfere with that by submitting competing offers, and this is not the correct way to handle the buyer's rights in an accepted offer (even though it is subject to lender's approval.)
In a short sale the listing agent has a fiduciary duty to the seller (which is NOT the lender), but NOT to the lender at all!
While it could be argued that a higher offer is better for the seller, that's not necessarily true. The correct procedure on a short sale is to accept one offer and submit it to the lender for approval. That's how the short sale process is designed by the lender.
It can definitely mess up the seller-accepted offer and successful short sale altogether to interfere with that by submitting competing offers, and this is not the correct way to handle the buyer's rights in an accepted offer (even though it is subject to lender's approval.)
- Benjamin Ficker, "Benjamin.Ficker"
- Contributions:75
The listing agent is going to screw up the deal. Did the sellers already accept your offer or are they waiting to sign off once the bank gives approval? I'm not sure if your local rules are different, but the BEST way to get short sales closed is to accept an offer and hold any new offers as back up (NOT submitting them to the bank). If the sellers accepted, you have a binding contract. They should NOT be submitting more offers to the bank. This will just screw up the deal. You should not have to do a highest and best since your offer was already accepted. If the listing agent submitted the other offer to the bank, then you are in trouble. The bank could just deny your offer and accept the other one.
- nealadler
- Contributions:198
That happens many times. As an agent that lists bank owned properties, they will typically will require highest and best. Sometimes they might have a second go around. In the case of a short sale this is not unusual. You might have your agent contact the listing agent to see if they are willing to give you a little bit of direction with regards to what it might take to get the property.
- Schultz Christine, "christineschultz"
- Contributions:11
If the home is bank owned, ask your agent what the ture value of the home is, what will it appraise at? Your agent should have given you that numbert already. I always ask my clients what they are willing to spend to not loose that home. Bank owned homes are usually priced to sell. In our area we have seen as high as 10000 over list price on highest and best offers. Good Luck
- Mark Bjorkman, "Luxor Dreams"
- Contributions:49
My opinion is give your highest and best. Banks usually either approve or deny. They are not too much into counter offering.
Short sale "highest and best" strategy?
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