Home Buying in Quincy>Question Details

M. Daniel, Home Buyer in Quincy, MA


Asked by M. Daniel, Quincy, MA Mon Apr 19, 2010

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Your first step should be to have a buyer broker is well experienced with short sales, not everty agent is so ask... You need to find out how far along they are in the short sale process. has the bank accpeted and signed the offer from the buyer, if not then you should be able to place an additional offer. The bank who holds the mortgage for the seller mandates that the listing brokers submit all offers as they come in up to the time the bank finally accepts one, the seller must sign the offers but they must be contingent upon the accpetance by their bank for the short sale, the offers should be accompanied with a short sale addendum that outlines the short sale process. The seller should be encouraging offers as the more a buyer pays, the better chance teh short sale is to working and the less the seller owes to the bank after the short sale. A good agent working on your behalf shoudl be abloe to ask teh right questions. You should know that less than 1 in 4 short sales ever work out, so you need to have time and patience. Make sure you are preapproved, include a copy of that letter and dont have any contingincies in your offer. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Apr 19, 2010
Hi M.,

There is lots of confusion as to how a short sale works, which is why a low percentage are successful. The bank instructs the seller to only accept a fair and market based price... whatever that is. The seller should then sign the offer and submit all the paperwork to the bank ( signed offer, hardship letter, financials, and a HUD statement that shows how much the bank will lose ). Only upon receipt of all of that will the bank spend the time and money to hire appraisers and brokers to assess the home to see if the price is fair.

If they can justify the price, they will sell it. Many agents just submit offers or unsigned contracts to the bank which does not work.

To answer your specific question.... once the seller has signed another offer, they are legally bound to that person. So unless the other buyer walks ( which is common in shortsales ) or the bank rejects the offer they cannot sign you offer.

Ask the sellers agent very specifcally, has an offer and/or purchase and sale contract been SIGNED. If it has, an offer can be held as a backup. If NOT, then any amount of talking around it ( we're negotiating, talking with the bank, we're working with a buyer now.. we have an offer on the table etc etc ) is irrelevant. Write up and present your offer.
0 votes Thank Flag Link Sun Jul 10, 2011
Just put in the beat bid!
0 votes Thank Flag Link Wed Mar 16, 2011
Your agent can best answer your question--it depends--did the seller accept the other offer already, was deposit money exchanged, is the property in contract, etc., depending on far along in the process the other offer is, your bid may become a back-up offer--discuss with your agent, he/she is your best source of information.
0 votes Thank Flag Link Mon Apr 19, 2010
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