NY,

Kamal answer is correct. Best of luck with yuor purchase!

I've worked with several REO sales and I will say that even though you have an accepted offer, the LISTING agent will most likely keep looking at backup offers in case the first one falls through. It's not easy to deal with Asset Managers which is why the listing agents are always trying to cover all bases in case of certain deals not going through. IF a bank has accepted your contract, and YOU have a signed acceptance in hand, you should not worry even though they are looking at other offers. It's not the bank, it's the listing agent. Good luck to you.

Kamal Randhawa
Broker
510-932-1066

depends on if the offer is signed and in the hands of the buyer?
they are not suppose to take more offers after they have accepted one. BUT and there is always a but. that but is if the buyers do not have a ratified contract in their hands they do not legaly have an accepted offer.
most selling agents are protecting the buyers and not accepting more offers after one has been accepted. this is ethical practice. did you get an offer accepted and freaking out that someone may take the house from you. If so , do not worry. i have sold these bank owned homes and once an agent says it is accepted verbaly they honor it. but legaly yeah it could happen until you have a signed contract. OH the other but is if they are taking back up offers. which should be notice to all parties involved there are back ups. are you wanting to put in a back up offer. about 90% of the banks do NOT take back ups. It is easier for them to put on the market and get 20 more offers the next day. your agent should be explaining this to you. Make them explain everything to you in detail so you understand what is going on. this is what we get paid for. is this a short sale of bank owned, that make a difference! short sales anything can happen. just because you signed an offer it can be picked up by an all cash buyer who offers more. depends on if the listing agent is ethical.

Clearly there are a variety of opinons on the matter and I do not necessarily agree with the other agents who state it is simply a matter of being in backup position. ALL short sales are not in force until the lender has approved the short sale. Since the lender is being asked to relieve a debt of the homeowner, the consequently have rights. One of those rights is to know what other offers are coming on on the property while considering the offer submitted for approval.

The consequences of that decision have an impact on the sellers. If the buyer is properly represented by an experienced and knowledgeable agent, he can add provisions to an offer and be protected against another buyer swooping in and stealing the home he invested his energy in, and has patiently waited for. Experienced listing agents also know that putting better offers in front of the lender IS IN THE SELLERS INTEREST. Liabilites are minimized and best buyer gets the home. I have discussed in other posts that its not always about the money, its about being the strongest buyer, that factors into the listing agents considerations and handling of the short sale, but that is an agents discussion.

Let me illustrate this. A home closes in a neighborhood at 300k. A neighbor, after advising an attorney and tax consultant decises it is favorable for them to short sell a home. They have a non-recourse note but prefer to save their credit, but they are deeply upside down. They call an agent, list the home, send their paperwork into Underwater Bank and Trust who saya they won't look at the paperwork until an offer is received. They are too busy.

45 days into a short sale the seller receives an offer from an investor for 200k all cash close 48 hrs after the short sale is approved. After setting up the proper terms the offer is submitted to the bank.

60 days into the short sale a solid family writes an offer at 260k but they are FHA 3.5% down payment.

Is it in the sellers interest to continue with the lower offer? Seller doesn't care. They have two offers and a non recourse note.

Is it in the lenders interest to accept the the lower offer? The lender has no obligation to the buyer. It is possible that in the absence of the the second offer the bank would not approve the short sale based on the 300k comparable. So let's say the lender does not approve the 200k sale, does the seller have an offer? No.

Will the cash offer move his price up? Did the 2nd offer wait? How long is left until the sale date?

I stand by my statement.

They will keep back up offers just in case the one that was accepted didn't go through.

Good Afternoon,

Once the bank has accepted an offer, they do not take any other offers after the fact.

If the buyer's accepted offer defaults, the bank will put the property back on the market and start the process all over again.

If you have anymore questions, please contact me at your convenience.

Regards,

John