Cancels all bids. Bids are not binding on any short sale OR REO listing. All offers are subject to final approval from the "owner" (The institution or investor(s)). Once "accepted" your offer is still not binding until the contracts are fully executed by the "seller". In the case of a short sale, the seller is truly the lender as the owner can approve any offer yet, if below the amount that is owed, the lender must approve the sale. In any case, the contracts and addendums provided by the lender, almost always, have "weasal clauses" that give the seller, lender or investor, the right to stop the sale and cancel any agreement prior to the close of escrow. Short sale transactions are never final until escrow closes and it is not uncommon for the sale to cancelled.

Hi Misty,

If you mean if it goes to Trustee Sale, which is the auction that occurs right before a bank forecloses.... your bid goes by the wayside.

However, most properties don't sell at Trustee Sales. The two major reasons are that, most often, perspective buyers haven't seen the inside of the property and, secondly, they don't have the 100% liquid funds required to buy at auction.

You can check to see if it pops up on the lender's REO list. I have a huge list of these bank sites where you can search their current REOs (Real Estate Owned). You can try to find out what asset manager is assigned to the property to see if you can make an offer on it prior to it hitting the market. Better yet, you can try to find out which agents that bank is listing their properties with and have your agent contact them. If that is all in vain, have your agent set up an auto search so you are both notified the moment it hits the MLS.

Another option.... I do know a San Diego based company that is assisting buyers around southern California in fronting the required 100% funds at the trustee sale auction. They charge a fee (which is later to be wrapped into your final sale price) to go purchase the property on your behalf and hold it until you can obtain financing to purchase it back from them. This may be an interesting option for you to investigate. As you can imagine, this wipes out a lot of the competition in the buyer pool that comes into play once the bank puts a property on the market. You can often pick up a property below or at current market value, even with the fee.

I know the market is a little overwhelming.... make sure you have an agent that is ready for anything!

Good luck out there!
Tara

Tara Steinke
San Diego Real Estate Specialist
Residential Sales and Appraisal
619-384-6014
SDRealtor.Tara@gmail.com