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D800,  in 92691

I am a "back up" buyer in a short sale and my offer is much higher than the original one. how I make sure the bank is actually seeing my?

Asked by D800, 92691 Tue Mar 27, 2012

offer? i think the selling agent is the buyer's also and thus not wanting my higher offer to go through... Can I directly call the bank?

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If the property is under contract with another Buyer, the bank will not see your offer until the other Buyer is no longer under contract with the Seller. So, if the bank wants more for the home than the current contract and the Buyer walks, then your offer can be considered, made a contract and submitted to the lender.
Also, it is not always an advantage for a listing agent to have a buyer as well in a short sale. In many cases the lender will cut the commission considerably if the Buyer and Seller have the same agent.
Lasty, you as the Buyer cannot contact the Seller's lender.
Buying a short sale is not always easy, hang in there.
1 vote Thank Flag Link Tue Mar 27, 2012
The house technically is still owned by the seller, not the bank. The bank needs to approve the sale price. Does the current buyer have a contract signed and terms accepted by both the buyer and the seller? If so then it's a legal issue. They are under contract and because there are two parties to the contract, both need to agree to terminate the contract (unless the contract is voided for other reasons). Only then can the seller go with your offer. If you really want the property, hang tight. My attorney has informed me.....8 out of 10 short sales never make it to the closing table. You have an 80% chance of your offer heading to the top.
1 vote Thank Flag Link Tue Mar 27, 2012
Most of the time the bank will only look at one offer at a time.
1 vote Thank Flag Link Tue Mar 27, 2012
Like with any other offer the Seller (Person that has the name on Title) is the one who chooses the buyer, the offer does not have to be the highest in terms of dollars or terms. If a lower offer was accepted by the Seller then that offer along with a "Package" of other information is sent to the bank. Once the Bank is done negotiating with the 1st Buyer they either go into Escrow or look to a "Backup" offer which it sounds like yours is. This is not like an Auction. Be Patient. Most of our Short Sale Listings end up going to the 2nd or 3rd offer do to a variety of reasons.
1 vote Thank Flag Link Tue Mar 27, 2012
The seller and the bank are legally bound to the origainal buyer once a written contract has been accepted by all parties. Sometimes a seller may take a back up offer in a short sale just in case a buyer does not like the terms a bank may come back with in a short sale situation or if the buyer cannot get financing. In the past I've seen several buyers back out of a short sale due to the length of time the bank takes to do their B.P.O. or the final price that the bank decides upon. I am seeing less of that now, since their is less inventory in our housing market.

Joanne LaFleur Broker/Associate
Jones & Company Realty
(239) 634-0982

JLAFLEUR1234@yahoo.com http://www.swfloridaareaproperty.com
0 votes Thank Flag Link Sat Jun 16, 2012
There is a lot of confusion with the short sales.
Only one offer needs to be signed by the seller and the buyer, as is legal.
Only one offer should go to the short sale lender.

Back up does not get signed (if done the right way).
That's why it is called a back up offer.

I'm sorry that no one explained this to you originally.
However, because the short sales take a long time, a lot of times the first offer buyer walks away.
Then, your offer might become the first offer (and it won't have to be as high, by the way).
That is, unless there are other back up offers, who have the same rights as yours, unless yours is signed by the seller (after the first buyer walks).

Irina Karan
CDPE
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Apr 11, 2012
The bank will not see the offer unless the offer in 1st position becomes null and void. Also, there is no guarantee that the bank will even accept a short sale. I would start looking for another home fast as home inventory is dropping and prices are rising.

Steve Geving
(O) 239-573-1400
(C) 239-321-1395
(F) 239-288-0537
stevegeving@hotmail.com
http://www.swflhomeresource.com
Jones and Co Realty
0 votes Thank Flag Link Wed Apr 11, 2012
Most likely the bank will not ever see your offer unless the buyer in first position walks for some reason. I handle alot of short sales and never recommend a buyer be in back up position - you always want to be in first position if you really want the house. I suggest you keep looking at other properties unless you have reason to believe the buyer in first position is going to walk away.
0 votes Thank Flag Link Fri Mar 30, 2012
Unfortunately the answer is no you cannot contact them directly. Negotiators at the bank are hard enough to get a hold off and will only speak to borrowers and individuals authorized to speakto them by the borrowers/home owners, which are typically agents and negotiators. The best recommendation would be to ask the agent what the odds are of you getting the home and the outcome will most likely be you moving onto another property.
0 votes Thank Flag Link Wed Mar 28, 2012
If you are in second position, there's nothing you can do. Your offer will not be considered unless the first buyer steps aside. Honestly pursuing short sales that aren't pre-approved by the lender is in my opinion a complete waste of time. Statistically most Sellers will not be approved for a short sale and it can easily take between 3-6 months to even get a response if the sale hasn't been pre-approved by the lender.

Taking a second position in a non preapproved short sale is akin to banging your head against a wall. Take my advice, move on, stop looking at short sales, and look for a motivated Sellers (there's plenty around) and you'll be much happier in the long run.

Another option is foreclosures, which unlike short sales are much easier to purchase. If this interests you I suggest reading more about foreclosures sales. I've attached a link below to a recent blog I posted here on Trulia about them.
0 votes Thank Flag Link Wed Mar 28, 2012
I am on back up BUT the bank has not approved the first buyer yet... Previously the first buyer didn't want to increase the price and my offer is more. Currently the bank is re-appraising the house. I mainly wanted to see if I can directly contact the bank given it doesn't make sense that they are working with a significantly lesser offer.
Flag Wed Mar 28, 2012
Keep looking... unless you have a written authorization from the borrower you cannot discuss a person's account.

The Seller has 100% control over who he/she will attempt a bargain priced short sale with.

Also it depends on the way the 1st contract is written and the wording in the Short Sale addendum.

Bottom line is I would try to be as "nice" as possible to the Seller and his/her listing Realtor or there is also a way for your backup offer to simply expire after 90 days (standard) and they can immediately kick you out as a backup and sell to another buyer.

Don't mean to frighten you but this is the reality. Again, remember you have zero control, the Seller has 100% control over who will get a chance at buying his/her house.

Keep looking and also your higher "backup" price may also be too low to be possible. Banks will allow a lower than market sale but you can't usually get more than about a 10% discount. May not be worth the headache for the discount.

Keep looking, the true bargains are bank owned and you can even get an FHA 203k to turn replace ugly flooring, kitchen, old roof, etc. and still only put down 3.5% of the sale price.

Also if you buy a property in good functional condition you may be able to get up to $7,500 from the State of Florida Bond Program for first time homebuyers--you and your spouse cannot have owned a house in the past 3 years to be considered a first time homebuyer. You must qualify on your family size and income and must work with an APPROVED lender. You can find the lenders here:

http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWiz…

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes Thank Flag Link Wed Mar 28, 2012
Like Linkpin below says, it is up to the seller to present the offer to the bank. They can pull the first offer and present yours, and they should tell you the status of your offer. If the other offer is accepted and sent to the bank the bank may decide that that offer is too low. It could be that the seller's agent is trying to get the ball rolling with the bank so that they can figure out what the bank will take. If you want to increase the likelyhood that your offer is accepted by the seller you can increase the strength of your offer without increasing the price. Make the offer a cash offer, eliminate contingecies or get your martgage through a better lender. your agent should be able to advise you on how to strengthen your offer. The fact is you could go through the process and not end up getting the house anyhow. The best thing to do is to not get too attached to one property and look for something else that you may love even more.
0 votes Thank Flag Link Tue Mar 27, 2012
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