If you used the Short Sale Addendum form (SSA) when making your offer, please review paragraph #6. It states that unless agreed to in writing, the seller has the right to accept back up offers but should notify the buyer if another otffer is submitted to the bank.
Hope that helps,
Eileen Cline, Realtor
Experience that answers all YOUR questions.
239-851-0451 cell phone
I once spent a half hour arguing with the broker of a major Windermere office who insisted on agreeing with his agent that they were going to submit multiple signed offers to the lender and let the lender pick. Can you imagine the liability for a lender who made that decision for the owner of a property? What if they picked an offer that subsequently failed? Would the lender be responsible? You can see why logically the lender does not involve themselves in determining the best offer (they can barely decide on a sjhort sale, let alone one offer over another). One offer might be for a higher amount, but another might be for better terms. What would be best? A higher offer with 0 down financing, or a lower offer with a high down payment and conventional financing. IT JUST ISN'T UP TO THE LENDER TO DECIDE.
So, in your case, if you had a signed accepted offer and another offer with a later acceptance date was submitted instead, both the seller, the listing agent, and the listing broker are liable. They all violated the terms of your contract.
In my experience, if your offer was accepted and it pre-dated the higher offer, the parties involved are liable unless they can show that your offer was mutually canceled PRIOR to the seller signing the other offer. An attorney can subpoena a copy of the previous offer and request documentation. If you have your facts correct, you should expect a fat check from the listing brokerage's E & O Insurance.