I don't think a buyer can insist on a first right of refusal. Although the seller is still very much involved in the short sale process by accepting/rejecting/counteroffering, and choosing who is in first place, back up, etc. this is merely the INITIAL step. The FINAL decision rests with the Lender who can override the seller's decision if the lender deems another offer as better.

If the seller doesn't want to review any more offers, the seller has the right to do that, but better get that in writing, and say so in the MLS.

Agents and sellers behave differently in different transactions. For example, I submitted an offer on a property that resulted in multiple offers. The seller and the agent liked my offer the best, (highest price, best terms), the seller accepted, and it was only my offer that they forwarded to the lender. The seller and the agent made that decision.

Now comes the hard part. Waiting....waiting....waiting....waiting....waiting...

On more than one occasion, my clients withdrew their offer on a short sale, and moved on to someothing easier and faster to manage, like an REO. On one my short sale listing, we actually went into contract after 45 days waiting for the negotiator. Then the inspections indicated more damage than the buyer could handle. The buyer backed out. In such cases, it's important and advisable to have a back-up.

Good luck!

Thu Jun 5 2008, 00:37

JoAnne,
Your contract is with the seller and your duty is to present all offers to the seller. You determine which offer is best and send it to the lender. Be careful in telling the lender that there are 10-15 offers on the property as this will show the lender that the list price is too low. Hopefully you have good rapport with the negotiator and can get insights as to what the BPO came in at.
Good luck!!

Thu May 29 2008, 23:30

Joanne,

As a listing real estate agent or broker, we are obligated to present all offers to the seller, and that is what we do--at least until an offer is finally accepted by the seller and lender.

It can be terribly frustrating for both agents and buyers, but we encourage buyers to make their best offer up front, because there may not be a second chance to do so with a short sale.

We still contend, though, that it would be best if lenders would pre-negotiate their short sales.

See below:

Fri May 9 2008, 22:10

Joanne,
I have one agent I work with, that has two short sale listings and he has 10 offers on one and 18 on the other. I suggested that he send in the offers with his recommendation for lender acceptance in priority order. He will probably send in all the offers by overnight, but fax/e-mail the first couple of pages of each offer, so the bank can review them. Since the lender is under no oblication to accept any offer that is not full price, you risk nothing by presenting all offers as they arrive.

Fri May 9 2008, 18:53

Give the first couner you already have to the lender, and proceed to present the second offer to the seller and if you have to counter do it and give to the lender, you do not have and acceptance on the first one yet, so keep presenting all offers as they come, let all the agents know that now they are on a multiple offer position.

Fri May 9 2008, 18:45

It is still up to your seller to counter back the second offer just as he/she did on the first. If the counter has not been accepted you are still obligated to present the second offer. Without the signed and accepted counter you have no binding contract. Technically a counter is a rejected offer. Question # 2. If your seller wants to exercise his first right of refusal he can if the offer has contingencies. If the offer and counter are accepted without contingencies he /she is leaving themselves open for litigation.

Fri May 9 2008, 18:33