Home Buying in Woodbridge>Question Details

Susan, Home Buyer in Woodbridge, VA

short sale multiple offers

Asked by Susan, Woodbridge, VA Thu Oct 9, 2008

My husband and I have just put in an offer on a short sale. There are two offers that are ratified in front of us. The buyers agent assigned to us from a dual agency (the listing agent is paying her salary) has stated we have a slim chance. I also queried whether it was a "approved" short sale and she answered in the affirmative. However, the first offer was ratified only 3 weeks ago. The house was listed for $299,900 and we offered $325,000. My understanding is that we are the highest offer, so I am not clear why we have a slim chance. I have asked her what we can do to increase our chances and she said that the first offer had first rights. My understanding is that the bank would consider the highest offer. Should I contact the listing agent?

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You have several questions here...

First of all, I would get a buyer's agent. Sign a buyer's agent agreement with the agent...that way they have fiduciary responsibility to you and not the seller...they'll be working for you. In most states, the seller still pays their commission. You have a right to representation. It is too late to bring an other agent into this deal and expect the seller to pay their commission...because that agent was not the procuring cause of the sale - they don't have to pay them. Short sales are much different than the average sale and you'll need someone on your side to get through it.

I'm not sure what you mean by sales that are ratified. Do you mean submitted? If you mean accepted, only one deal can be accepted and the bank will work that one until completed or it falls apart.

Short sales aren't "approved" they are eligible. At anytime, the owners can make full payment on an unpaid amount or negotiate someother type of workaround that saves the home from short sale and or foreclosure....unless the home has already been foreclosed and then the sale is bank-owned REO and not a short sale.

An agent working for you should let you know if you are over paying for a property...Unless the property has been priced tremendously under value and it is in very good condition, I question why you are offering some $26K over list.

The highest offer isn't always the best. Did you make the offer contingent on selling your current home or on financing? the other offers could be cash and or non-contingent. Those make the deal more solid and more valuable -to the bank- as well as any seller.

If you need an agent to represent you in your area, I'd be happy to get one for you who specializes in short sales.

Good luck...Dana Tippit RE/MAX Midwest Group 314-651-9900 http://www.YourResidentialPartner.com
1 vote Thank Flag Link Thu Oct 9, 2008
This is a mess. First of all; you can only have ONE "ratified" contract on a home at a time. The sellers cannot sell the home to 2 or 3 people; with or without the banks approval.

Banks seldom care about who is first or second - they care about the money. It sounds like you need to ask your agent about their experience with short sales and I would ask them how there can be multiple "ratified" contracts on 1 house!

Good luck
1 vote Thank Flag Link Thu Oct 9, 2008
Susan, Dana is right on. In addition to what she said, the seller has the option of accepting or rejecting any offer they choose. One would think that banks would take the highest offer but they don't always. None of us fully understand how the banks are making the decisions they are making; I am not convinced the banks even know as their decisions are often mind boggling.
0 votes Thank Flag Link Thu Oct 9, 2008
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