Foreclosure in East Orange>Question Details

Debbie Civit…, Home Buyer in East Hanover, NJ

I am putting a bid on a "short sale" home that already has a bid on it. I know my bid is more, but the other

Asked by Debbie Civitillo, East Hanover, NJ Fri Nov 21, 2008

offer is offering the bank most of the down payment right after attorney review. Is it any better for me if I do the same or does that bank mostly care how much is coming in at the end of the sale?

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5
Susan,

I am not too sure that the situation is as you state. Banks take some time to get back to the offers.
The listing agent must present your offer to the seller. Bank or Indiviual seller, the agent is to present all offers. Your agent should send a presentation letter to the listing agent and the agents broker.
This letter states the date and time the offer was presented to the other party and signed by all.

I assume your agent told you the the lsiting agent only submitted one offer. Follow up is critical in all aspects of real estate, your agent should have been on the other agent day and night to get that offer presented.
Although I do not know the particulars of this situation, my opinion is the offer was presented, but the Bank was satisfied with the offer they accepted and they felt no need to go further to get the property sold.

This is the way it is with bank deals, it is frustrating. I would not blame the listing agent unless you know for sure that this transpired and you were told this directly from the listing agent.
0 votes Thank Flag Link Sat Nov 22, 2008
The bank may not even see your offer. If you are a back-up offer and the listing agent does not forward your bid on to bank then the bank is not seeing "the best and highest". This was my recent experience with a short sale. We are the highest bid, most money down and highest credit standing. However, the listing agent only submitted the first bid.
0 votes Thank Flag Link Fri Nov 21, 2008
If the home owner has accepted the first offer and is waiting for lender approval then they can not accept your offer also. If they have a contingient offer pending they need to hear back from the lender on their requirements.
A short sale is not everyone negotiaing with the bank but the owner negotiating their best forgiveness package from all the lien holders.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Fri Nov 21, 2008
Debbie,

Agreeing with both answers, you need to definitely knock them dead with your offer (including highest price, best terms, downpayment, etc.) - IF the bank takes the deal - they will only take the highest and best so I would recommend you offer the highest and best because they may not ever come back to you with a counter-offer, etc.

With that being said however, in my direct dealings with short sales....the bank takes a long time sometimes up to 90+ days to make a decision on the dollar amount thus meaning that you will end attorney review BEFORE the bank even makes a decision. You will be required to submit your downpayment, proceed with inspections, incur inspection costs and in many circumstances even proceed with your mortgage application and incur additional fees before the bank decides if THEY will accept your offer. Not every short sale is the same and not every agent knows this and/or explains it to buyers purchasing short sales. I would speak to your attorney about inserting a kickout or escape clause because should the bank take too long to decide -- your funds will be tied up in the attorney trust account. You should also have your realtor ask the listing agent if the sellers have submitted their short sale package to the lender yet because if not, it may even take longer before you hear anything at all and in the meantime you will be obligated to proceed under the sales contract.

Good luck.

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
973-992-6363 ext 116
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Fri Nov 21, 2008
Hi Debbie,

In order to take the deal away form the other party ( if it has been accepted ) You need to walk in and knock them down with your offer to show you are serious. Walk in with a larger down payment then the other guy and you should take the deal. This is not time for weakness. If you want the deal, go take it.

John Sacktig
Orange Key Realty
0 votes Thank Flag Link Fri Nov 21, 2008
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