Therefore, it does not make logical sense to make a 'rock bottom' offer on a home listed as a short sale, and to expect the bank will accept that offer with open arms. Remember - the bank is looking to accomplish a sale that will lose them the least amount of money in the long run.
Hope this helps.
Portland , OR
If Wells Fargo holds the 1st & Chase Bank holds the 2nd, your offer will be submitted to both banks.
Cash is King, however I tell my sellers to still accept at least 1 back up offer. Those cash buyers are often offering on multiple properties & may not "stick with" my short sale listing, then that back up offer comes into play.
If you're obtaining an FHA loan, have your agent submit with any offer you write, a STRONGLY worded Cover letter, letting them know that YOU can close just as fast as a Conv. loan & make sure you get a Pre-approval letter through a DIRECT FUNDER.
It's not always the highest offer that will get accepted, but the one who Truly wants that particular house & will Stick With it till Short Sale approval is granted in writing. Your buyer agent needs to Interview each short selling Listing Agent. Some agents will submit 20 offers to the bank & others will submit only yours.
The Seller accepts the Offer ("chooses the Buyer").
The Contract is subject to approval by the Lender or Mortgage Holder.
The Seller should consider taking "Back-Up Contracts" until the Short Sale is completed.
If there is a bidding war in some cases cash offers will be accepted over lending.
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