Home Buying in La Puente>Question Details

Curious In Lp, Home Buyer in La Puente, CA

Who makes the choice of choosing the buyer on a short sale the lender or the current home owner?

Asked by Curious In Lp, La Puente, CA Sat Jul 25, 2009

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Everyone's comments are true, that it first goes to the seller; then the listing agent presents offer to the bank. Keep in mind, though, some issues that may or may not motivate the bank to accept the one offer that is likely presented - that is, is it enough, in the eyes of the bank, to at least recoup a good portion of what is owed on the home? Remember, a "short sale" is the sale of a home which has more owed on it than it will likely end up selling for in this particular market.

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.

Ruth Velez
Portland , OR
0 votes Thank Flag Link Sat Jul 25, 2009
Initially you write your offer to the owner who is still on title (Mr. Smith), then the Listing agent for Mr. Smith submits your offer to the bank (there could be more than 1 loan with a separate bank)
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.

0 votes Thank Flag Link Sat Jul 25, 2009
The Contract is between the Seller and the Buyer.

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.

Best wishes,
0 votes Thank Flag Link Sat Jul 25, 2009
Neither party truly cares just as long as you are approved for the loan support sales offer submitted close within standard 30- 60 days.

If there is a bidding war in some cases cash offers will be accepted over lending.

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0 votes Thank Flag Link Sat Jul 25, 2009
You are buying the house from the current home owner and they decide which offer to present to the lender. It is the lender that decides if the offer is acceptable and if they will allow the short sale to move forward. Be prepared to be very patient as it can take months to get a short sale transaction done. Also keep in mind that the vast majority of short sales never result in a closed sale.
0 votes Thank Flag Link Sat Jul 25, 2009
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