Home Buying in Fort Myers>Question Details

Austin, Home Buyer in Fort Myers, FL

Can there be multiple offers submitted to the bank on a house that is a short sale?

Asked by Austin, Fort Myers, FL Thu Sep 2, 2010

A few of the homes I am currently interested in the Ft. Myers area are short sales that show a status of pending. I was not sure if I was able to submit an offer to the bank/seller if there was an offer already pending?

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Answers

21
Impossible to know without a Realtor's help.
1 vote Thank Flag Link Tue Sep 7, 2010
Now I don't know where this is listed, but if in MFR we have very clear rules
'Article 4.1-1C: Short Sale Listings
6. Third Party Approval. Contracts subject to approval by a court, lender or other third party must be reported as “Pending” consistent with Article 4 Section 15 of these Rules.'

This rule reads very differently than some of the answers below. Now this may be different for different areas in Florida, I would not know why, but maybe.

So by the rules I have to live by, once the offer is made and accepted by seller, prior to bank approval,, the offer has to go pending. This would be, even with 3 party approval, a contact, contingent, but a contract exists.

I don't think I misread the rule, do I?
1 vote Thank Flag Link Thu Sep 2, 2010
Every short sale is unique. I've seen situations where banks do consider more than one offer for a short sale, but usually you are best to get in with the first offer. Why not take a look at listings that are currently active and have a better chance of getting your dream home.

Take a look here for all Fort Myers MLS listings: http://ftmyershomesearch.com/fort-myers-mls

Good luck bro
0 votes Thank Flag Link Fri Sep 17, 2010
Usually if the property has gone pending, the bank has accepted a contract and they usually like to work with one buyer at a time. You may have better luck with foreclosures or private owners. Good luck
If you would like assistance, I'd be happy to help.
Sandra Castillo
(239) 691-3815
0 votes Thank Flag Link Tue Sep 7, 2010
As previously stated, it is certainly a case by case basis. However, I have noticed that ONE offer is the most popular venue in the short sale process. Also, because the process has become better organized, more Buyers are staying "on the hook" ...which means they are going through the entire short sale process and proceeding to a successful closing. I recently called on 7 Active Contingent Short Sale homes in a popular community and all the contracts were strong. The agents kindly let me know that a back up offer was probably a waste of time. Your agent may be able to submit a back up offer, but I would definitely keep your eyes wide open for ACTIVE SHORT SALE LISTINGS. A short sale is tad complicated, but well worth the effort. You can search all short sales in Lee County using the link below and sign up for an email update that will notify you if a new short sale comes on the market in your desired area.
0 votes Thank Flag Link Tue Sep 7, 2010
Austin
Its a case per case situation. You have to work with a Realtor and he/she will tell you if its a multiple offer short sale or if the listing agent works only with one offer at a time and all others are considered back off offers. There are also cases where the selling price has been already been approved by the lender. As mention in our MLS it goes in 2 steps: first it becomes an Active Contigent Short Sale then it becomes Pending if it does.AS very well mentioned before hand in short sale and due to the time delay, the original offer may drop out of the race and you still have a chance to be the winning offer.
What I would do is in fact is keep away from multiple offer short sales unless you know excatly what you are doing with your Agent and work only with short sale where they work only with one offer at a time or if its an approved asking price. If its Pending as you asked then if you realy want it, do a back up offer, wait a month or so and see if its still pending and have your Realtor check with the listing Agent. For now if its Pending you would be only considered as a back up offer. Your Realtor has to call the Agent first.
Good luck!

Lloyd Nichols
Sandals Realty of SWFL
realtorlloydn@aol.com
239-810-2980
0 votes Thank Flag Link Thu Sep 2, 2010
Wow....late to the game on this questions. Lots of very competent agents below have all given great answers. Good luck in your search!


jessemcgreevy@gmail.com
239-898-5329
http://www.Bonita-Estero-RealEstate.com
0 votes Thank Flag Link Thu Sep 2, 2010
As the other agents have most capably answered your question! Good luck.
0 votes Thank Flag Link Thu Sep 2, 2010
As Nancy said, you can put a back up offer and if the buyer walk away you can be next in the line.
Good luck
0 votes Thank Flag Link Thu Sep 2, 2010
Hi Austin,
Are you working with an agent?? The best bet is to have your agent call the listing agent and get an update.They usually know if it is strong or if there may be a chance of falling out of contract. You could then put a back up offer on it. I have been very successful in many cases were my clients were back ups and the first buyer walked away. As they say, its never over till its over, and the property could fall out of contract. I would be happy to help you if you are not working with an agent.


Best of luck,
Nancy

Nancy Doyle
239-209-2237
nancy.doyle1@comcast.net
http://www.nancydrealtor.net
0 votes Thank Flag Link Thu Sep 2, 2010
PENDING status in our MLS means the contract is accepted and closing is pending. Best to move on to listings that are in ACTIVE status to have your best chance at a successful bid.
0 votes Thank Flag Link Thu Sep 2, 2010
John,

Our MLS here in Lee County has a field called "Active Contingent Short Sale". Once buyer and seller have executed the contract our rules require us to mark the property as Active Contingent Short Sale. Once the lender issues written approval of the short sale we are then required to mark it pending.

Terry McCarley, Re/Max Realty Team
0 votes Thank Flag Link Thu Sep 2, 2010
Hi Austin,

Often times the bank wants to see multiple offers (they are looking for the best one). Usually the seller has to agree to accept multiple offers and submit them to the bank, this needs to be in writing. So, to answer your question, it depends on each property.

This can cause "confusion" to the bank and seller's know that, so often times they will make accept other offers, but hold them in a file as a back up offer, in case the deal falls apart. When they submit a new contract to the bank every week, it ends up making the short sale process stall out, because the bank thinks there is always another buyer around the corner (and this is not the cause - a lot of the buyers fizzle out).

I wouldn't waste your time on it; if you are really interested in the property, I'd go in as a back up offer and keep looking. I think that will be a better use of your time.

Good luck!

Gabe Mellein
239.825.2234
0 votes Thank Flag Link Thu Sep 2, 2010
While some banks will look at multiple offers, every scenario is different. We have had much better success with short sales purchases when the buyer we represent has the first offer into the bank. With so many currently available active short sale listings, I would think you have a better chance of getting a deal done pursing active listings.

Here is a resource to view Fort Myers active short sale listings: http://www.greaterftmyers.com/fort-myers-short-sales.php

Good luck with your search!
0 votes Thank Flag Link Thu Sep 2, 2010
Austin,
That is such a good question. I would say that if the listing is Pending that it means that is is only awaiting closing. Pending means waiting for the close date.

It a listing is CTG or Contingent, then there are contract contingencies (for example: home inspection, mortgage approval, bank approval of the sale). So it means that it has a bilateral contract between the buyer and seller and is waiting for things to be done in order to close.

In any listing multiple offers depends on the Listing contract that the seller signed, or in some cases what the bank has stipulated that the conditions of the listing will be. That is where it is stated IF the property will have multiple offers or NOT.

So, if I were you, I would search for only A or active listings to have the best chance to get the property. In the listing you can see if there is a multiple offer situation or not.

Hope this helps make the alphabet of listings more clear for you.

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Thu Sep 2, 2010
Hello Austin,
Yes you can. If you have any questions about this you can contact me at 239-989-7077.
0 votes Thank Flag Link Thu Sep 2, 2010
YES. You can submit back up offers in the event that the primary contract falls out then you would move to first position.
0 votes Thank Flag Link Thu Sep 2, 2010
Most of the time the short sale goes pending when there's a signed purchase contract. At that point you can only put a back up bid on it if you like it that much. A lot of short sale buyers walk after a few months, so back up bids would then be accepted.

I'd advise you to start working with a realtor to help you with your transaction. They would be able to asnwer all your questions and steer you the right way.

We would be happy to represent you as a buyer. If you'd like our help, call us 239-206-4500

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
skype: napleshomes
http://www.andrewollick.com/realestateblog
0 votes Thank Flag Link Thu Sep 2, 2010
Austin,

You can, but some agents will hold it as a back up or send it to the bank. If you have a buyer's agent (recommended) they would analyze the short sale, let you know if it is something good to go after based on a conversation with the listing agent. I personally only let my buyers go in 1st position and with an agent that is only accepting 1 offer and sending to the bank. Please call me with any questions you might have. I also have an attorney that is available for in depth questions.


thanks,

Scott Riddle, P.A.
Realtor Certified Short Sale Professional
Realty Direct
E-Mail: ScottRiddle239@gmail.com
Cell: (239) 289-1849
e-Fax: (239) 390-0027
Web: http://www.NaplesRealestateTeam.com & http://www.NaplesRealtorPros.com & http://www.NaplesRealEstatePros.com
0 votes Thank Flag Link Thu Sep 2, 2010
Dear Austin

Lenders are normally open to accepting additional offers. For a short sale, the easier the terms of the offer the better and cash is definitely king.

If I can help, please let me know.

Best regards,

Bill Simons
239-565-4343
Billsatwork@aol.com
0 votes Thank Flag Link Thu Sep 2, 2010
If the listing is already marked pending that means the bank has already accepted an offer and the property is getting ready to close.

If an offer has been submitted but the bank has not approved the offer yet, the listing should be marked active contingent short sale.

Depending on how the listing contract is written as well as how an offer to purchase is written will determine if multiple offers will be submitted to the bank on a short sale.

For a detailed explanation of the short sale process feel free to call me with any questions you have. I specialize in short sales and would be more than happy to assist you.

Terry McCarley, Realtor®, CDPE, CPV

cell: 239-707-4575
email: leecountyrealtor@earthlink.net
0 votes Thank Flag Link Thu Sep 2, 2010
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