Home Buying in Romeo>Question Details

Duco, Home Buyer in Romeo, MI

I put a bid in on a short sale. My agent told us that the listing agent and the home owner didn't even present the offer to the bank. Isthat

Asked by Duco, Romeo, MI Mon Oct 5, 2009

normal? I thought they had to present all offers.

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4
Hi Duco,
Have your agent check with the sellers agent to see how far along they are with the short sale process. It can be quite a lenghty process, especially if they have just started the process. Patrick's comment below is correct. The seller would have to accept your offer and then present it to the bank, but if the bank doesn't accept it or if you are a back up offer you are back to square one, looking for another property. If you can find a bank owned home or a private owned home, you might have better luck negotiating a price, not to mention close in 2009. Good luck! If you have any more questions feel free to ask. I am also a Realtor in your area.

Pam Bava, e-Pro Realtor
GMAC Real Estate / Kee Group
586-840-0400
Web Reference: http://www.thekeegroup.net
0 votes Thank Flag Link Mon Oct 5, 2009
Hello Duco and thanks for post.

Actually, in the case of a short sale, the current owners (not the bank) will sign and approve the sales contract. Once a successful buyer has been selected by the sellers, that ONE sales contract is sent to the bank for review and approval. The bank approves the sale price and any other terms, but the sellers are still in control of the sales transaction.

Listing agents seldom, if ever, present more than two short sale offers to the bank at any time to prevent confusion and delays in processing the approval.

I hope that this helps answer your question. For more information about short sales, please talk with your Realtor.

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Mon Oct 5, 2009
A shot sale by its nature involves the lender accepting less than the amount owing on the loan. The seller seeking the short sale must first accept the offer then it is presented to the lender for approval. I can't think of a reason they wouldn't present the offer unless there is a preivious offer that is better. Was there an acceptance by the seller on your offer?
0 votes Thank Flag Link Mon Oct 5, 2009
The way a short sale should work is that you make your offer to the seller. If the seller accepts your offer, then they take that contract to the bank and ask them to approve the sale. It doesn't sound like you have a contract with the seller. If the seller already has an agreed upon offer any other offers would be back up offers.
0 votes Thank Flag Link Mon Oct 5, 2009
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