Yes, there can be offers sent to the seller at anytime until the sale is final. Depending where in the process the current offer is there could be consequences involved.

There's another practice followed by a few agents where they never submit the offer to their clients and just submit it to the bank for approval, leaving the listing in an active status. That they have this practice should be disclosed in the listing.

I generally advise my buyer clients to simply not deal with agents with that practice. You don't know for sure whether you're making an offer on a property without an offer, and you're likely to get outbid during the approval process.

All of the answers you have received are correct. If the short sale addendum indicates that the seller may accept other offers to present to the bank, they can do that. Usually the status of the home is "Pending-back ups requested on a short sale, even if the short sale addendum indicates that they may not accept other offers because a fair amount of buyers get tired of waiting for the bank and back out of the contract. This again is something that is addressed in the short sale addendum. A note that is worth talking about is typically when the lienholder (bank) approves the short sale they will send a document that both the buyer and seller (and sometimes the agents involved) have to sign. In my experience (I have worked 15+ short sales so far in 2009) this document will say that ALL offers have been sent to the lienholder for review. So, if all offers are not sent to the lender & this form is signed by the parties involved & there were more than the one offer, there is a problem. Also, if/when the seller gets an approval from the lienholder in writing, it is imparitive that they seek legal & tax advice. Real Estate Agents are not licensed to advise on legal documents outside the scope of their license (NWMLS forms).

The sad reality is that the banks can do pretty much whatever they want and, until someone big (like the Feds) step in with some significance, they will continue with playing by their own (unethical at minimum) rules and buyers, sellers and real estate professionals will continue to suffer the consequences. Bottom line answer to your question is: yes.

Kim

Disclaimer: I am a licensed real estate broker and property/casualty insurance agent in the State of Ohio, providing information and sharing experiences acquired over 15 years in the industries. I do not profess to be qualified to give advice in any other field, though will share opinions and information obtained during my course of work. It is always highly recommended that consumers seek counsel from a specialist in each area in which there is a question or concern.

Just to clarify if the Short Sale Addendum (NWMLS Form 22SS - Line 3) indicates that the Seller may not accept other offers, then other offers may NOT be accepted until the bank has replied to the first offer and if this is the case the listing agent representing the seller should have the property listed as PENDING. However, if it indicates the seller may accept other offers then the listing should indicate PENDING - BU (Back Up Requested) and other offers MAY be submitted to the bank.

Nicolette,

The answer is yes. The standard MLS paperwork allows for a seller and buyer to negotiate the possibility for a seller to present other offers to a bank.

I hope that helps.