Home Buying in 33913>Question Details

Shortsalelos…, Home Buyer in 33913

In a short sale, is the the seller obligated to tell the lendor of all offers even if they came in after the seller accepted?

Asked by Shortsaleloser, 33913 Wed Dec 22, 2010

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18
No, in fact the bank negotiators only expect/want one offer to be submitted to them for approval.
1 vote Thank Flag Link Tue Dec 28, 2010
it sounds like you are trying to buy a house in my area. We have an approved short sale you might want to look at. It is on Trulia, 10469 Carolina Willow Dr, Fort Myers FL 33913.
thanks, Justin Ruzicka
Just Right Realty Company
239-699-0517
1 vote Thank Flag Link Sun Dec 26, 2010
No.

A short sale is a transaction between the buyer and the seller. If the buyer makes an offer that the seller accepts, then there's a contract. The contract is contingent upon the lender(s) approving that contract. The lenders should/will exercise due dilligence by having a BPO performed, or by taking other steps to determine the current value of the property. If the lender is satisfied with the price (and remember--it's not just the home's value, but various factors within the lender's organization, such as short sale versus foreclosure), then the lender approves the transaction between the buyer and seller.

The seller, if he/she wishes, can keep those other offers in reserve as backups. But, to specifically answer your question, no: the seller is not obligated to tell the lender of other offers that came in after the accepted offer.

Hope that helps.
1 vote Thank Flag Link Wed Dec 22, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
The answer is NO - In the short sale addendum the buyer can choose to have no other offers submitted to the lender until the first offer is negotiated. Also, the seller can choose to submit only one offer at a time. Most agents that handle short sales on a regular basis will not submit multiple offers as it totally shows down the process.

Terry McCarley / Remax Realty Team
email: leecountyrealtor@earthlink.net
cell: 239-707-4575
1 vote Thank Flag Link Wed Dec 22, 2010
No, actually most lenders don't want to know. They want to work with one single offer to the end. Every time you submit another offer they start the process again.....so don't do that. What you can do is tell the people making the offers that if the current offer is rejected you will call them as a back up, so keep their numbers.

Tony Vega
Charles Rutenberg
1 vote Thank Flag Link Wed Dec 22, 2010
NO, it is not allways the case.

It depends on how the listing contract is written with the seller. It can be all offers presented

OR

Back up offer taken and not shown to the lender unless the first offer falls.

We allways opt for the second option because we feel the lender is more likely to make a decision and we want them to focus on ONE that is market value and sitting on their desk on our listed property.

Debbie Albert, PA
Keller Williams Realty
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Sat Apr 2, 2011
First of all, a short seller is a debtor one step away from a bank foreclosure. The debtor usually is substantially in arrears on his home mortgage. Generally banks do not want to take back real property and be obligated to pay costs on the acquired property. Therefore, the bank will allow a a debtor in default to market his/her property for a certain period of time, accept offers, etc. This is a short sale. With property values declining, it is conceivable the mortgage amount exceeds the property value. In this case the debtor hopes and negotiates a mortgage payoff that may be below the amount owed to the bank. Sometimes the bank foregives a certain loan balance (a taxable event on your 1040) or tries to get the debtor to make up an agreed upon under a promissory note. If all of this does not work and the bank is frustrated in its wait for sale offers from seller, they will have no alternative but to foreclose and chase the debtor for any difference.
0 votes Thank Flag Link Sat Apr 2, 2011
In a word....NO....

The answer is in the short sale addendum in the Listing Agreement on the property. In the MLS (at least ours) you must disclose whether or not you are taking multiple offers or a back up offer. You also can disclose whether or not the sellers lender has received the financial paperwork that is required to approve the seller for the short sale.

Best of Luci to you and your purchase!

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Mon Dec 27, 2010
Marge is right, Don said it best.

So, it's always important for a buyer who wishes to pursue a short sale to ALWAYS be extremely courteous and respectful of the owner. The owner has 100% control over which buyer will get the opportunity to buy his house. Also remember that unless the listing price has been approved, it may not be possible to buy the house even at the full asking price so don't think you'll get a fabulous bargain on a short sale. The best buys are bank-owned properties.
0 votes Thank Flag Link Wed Dec 22, 2010
DEAL DEAL short sale at all clear at the end
0 votes Thank Flag Link Wed Dec 22, 2010
Don said it best. The contract is between the buyer and the seller. The bank just has to approve it. some of them WANT to continue getting offers, but that really gets things confusing and delaying while they wait for something better to come along. Let me know if I can help
Marge Bennett
RE/MAX Realty Group
239-560-4159
0 votes Thank Flag Link Wed Dec 22, 2010
Shortsalelos,

The answer to this question is found in the listing. The listing short sale addendum specifies if multiple offers will be accepted, or if a back up offer will be excepted. If a back up offer is excepted, the bank will not receive it unless the first contract falls.

It is a matter of choice for the seller. By the way, we recommend that only one offer be presented. If the bank is waiting for more, why would they make a decision?

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Wed Dec 22, 2010
Looks like several good answers below. Here are some blog posts about short sales which may be helpful in better understanding the market here in Southwest Florida: http://www.gulfreturns.com/tag/short-sales

Good luck with your search!
0 votes Thank Flag Link Wed Dec 22, 2010
No they are not.......you can take mutiples if you want......you can submit more than one if the seller does not sign.......if the seller signs an offer though than that is the one they will submit.....all other after that are back up only. Make sure your Realtor understands the ins and outs so you can stay informed. We would love to help you if you need as my partner actually lives in Gateway.

jessemcgreevy@gmail.com
239-898-5329
http://www.Bonita-Estero-RealEstate.com
0 votes Thank Flag Link Wed Dec 22, 2010
There are no hard and fast rules or guidelines in the short sale process. It is in the best interest of the seller and lender to have all offers presented. Unfortunately, every Realtor or short sale negotiator approaches the process in their own particular manner. The obvious goal is to net the seller/lien holder(s) the most money possible in the current market. Most short sales are what we call a "long shot" to get to closing, but considering the kind of "buy" a home buyer can get, they are worth the effort. Patience, perseverance and a fall-back position is needed to be successful.
0 votes Thank Flag Link Wed Dec 22, 2010
Hello,
A short sale requires two acceptances; first by the seller and then by the lender. It is the lender who is the final decision maker on the offer; not the seller. It would be in the seller's best interest to submit all offers to the lender until one is accepted by the lender as this way the seller may obtain the best price and closing terms from all offers.
I hope this is helpful.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Wed Dec 22, 2010
The bank looks and responds typically to one offer at a time. There is no obligation to send additional offers once one has been sent to the bank for approval.
Bob the Realtor Forman 239-322-7672
Web Reference: http://www.buyfloridare.com
0 votes Thank Flag Link Wed Dec 22, 2010
Your Realtor should guide you on this; but generally yes it is always wise to communicate all information between all parties.
0 votes Thank Flag Link Wed Dec 22, 2010
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