Listing agents are reluctant to submit a back up offer to the bank because they work for the seller and the seller is in a short sale because they can not keep up with the mortgage. The bank process is long 4-6 months typically and when you start over with a new bid the time also starts over. The truth of the matter is, the home you love has been listed at a price the listing agent and the seller believe they can sell the home- this is the marketing price. During the 4-6 month process the bank comes out and appraises the home , they then go back to the buyer and tell the buyer what price and terms they are willing to sell the house for. Anotherwords, you most likely love this home at the price it is listed at. This is not necessarily the price you will buy the home at.
I agree with the other agents on this blog, if your home is under contract, you need to find a home which can sell within the time frame you need to buy. The buyer for your home most likely will not wait 4-6 months , so you will end up having to start over.
Best of luck,
ReMax Village Square
Your agent can position your offer with the agent and attorney as back up. I've got one in now that is in that position, but it is still no guarantee as our offer is not what the bank is looking for. And so in our case, though several deals have come and gone since we made our offer, we are keeping ours on the table. The difference between this investor and you as a buyer is emotional attachment.
If you do decide to continue to pursue this,highly recommend that you continue looking for alternatives. Even if your offers gets into first position, you will be looking at a long and uncertain ride. Short sales do get done, much has to do with the resources, banks - including number of banks - involved. But even if when everything looks to be in great hands and in good order on the face, it can take 6 months to reach the closing table. Short sales take the starch our of even the best....
Good luck and best,
Unwavering Commitment to Service, Unsurpassed Results
hi to all my friends who responded here! sorry for my funny typing style, but i am typing 1 handed these days - broke my arm at my open house 2 wks ago......ouch!!
have a great weekend all.........
This can be a bit complicated, but i will try to explain it as simply as possible. First of all, I am not sure if you are aware of this, but even if your offer is the first offer, it can take months (like 4-6) for a bank to approve a short sale and get it through all the internal bank processes before you close on the house.
If your current home is already sold, can you wait 4-6 months to move out while waiting for a short sale approval? I seriously doubt YOUR buyers would be willing to wait that long with the chance that your offer might not even be accepted by the bank and you can't move out.
In your specific case, if the bank has an offer on the table, the sellers agent can submit another offer to the bank, however, they first have to cancel the first contract. This can only occur if the first contract is still in attorney review.
Also, if your offer is not better than the first one, it's not worth the bother of canceling the first contract, and sending ALL the paperwork involved necessary to notify the bank that the first offer is null and void, and asking the bank to now consider your offer. Not to mention that you still technically have a sale contingency (your home sale can fall through, it happens all the time), and the banks frown upon that as well.
The change in attorney really means nothing, it's typically up to the sellers agent to deal with the bank involved, with contact on a weekly basis to make sure things are progressing.
The short sale process can be long, aggravating, and there is no guarantee that your offer will be accepted. As much as you love the house, I might suggest you turn your attention to finding another home, rather than waiting to see if the first contract on this short sale falls through.