In the state of CA, all offers have to be presented to the Seller!
You are the seller!
Yes, you will open Escrow with an offer you and your Broker feel the bank will accept.
In CA your Broker will use a Short Sale Addendum to explain the process the terms.
Your Broker will have you acknowledge receipt of the other offers, refuse them, etc.
The bank will hopefully respond and determine if the offer is acceptable.
They have the option!
Prudential CA Realty
There sure is a variety of answers. I wonder if Mr. Adler was ever able to short sell his property, and how that transaction played out.
It would be nice if people came back to give us their progress story, once in a while, to make the time we spend answering such questions, seem worth the bother.
In the end the bank will go with the highest and best offer submitted to them prior to their acceptance of any offer so you may accept a lower offer but the bank will ask your agent to submit the highest and best offer.
I would be happy to pesronally go over the short sale process in detail with you
I was reading a few of the answers below.
It does matter to you which offer you accept.
As Emily stated, you want a qualified buyer and one who is willing to stick it out!
You definitely need to open Escrow and use the Short form addendum!
No money is paid or deposited by the potential buyer until the bank approves the offer.
All offers are required to be presented to you the Seller unless you specify that you are not interested in further offers!
Your agent will have you sign the proper page as an acknowledgment that you are refusing the other offers and this acknowledgment will be sent to the other agent & Broker.
This is critical as any good agent or Broker knows!
An offer has a better chance of performing with the bank when youâ€™re Agent or Broker does his or her homework to verify the validity of the potential buyer in first position!
As a Broker, I nor any other agent or Broker can interfere with a contract you may have with a current Broker.
This and my other comments are simply free advice.
Once you choose that offer, you Accept as the seller on title & it is ONLY Subject to 3rd party approval.
This means your listing agent should put the condo in a "BACK UP OFFER STATUS" in the MLS.
When other offers come in say "We have an offer that has been submitted to the bank, thank you for your interest, we will hold onto your offer and if the 1st buyer backs out, then we will submit yours". You should also let this buyer know WHICH back position he's in. "you're back up buyer #1 or #2" etc.
Do NOT work with an agent who keeps the listing in ACTIVE status while submitting multiple offers to the bank! This will only make your approval process longer.
Please let me know if you have any more questions, email me directly and I can point you in the right direction
There are many ways a short sale can be handled. You are the owner of the home and the way it is handled is up to you and the agent that you choose. I believe that it is not only unfair to the original offer but when you don't show some type of commitment you have an excellent chance of loosing the buyer you have. Because short sales are a time consuming process in some instances the buyer gets tired of waiting and may walk. When evauating which offer to take one of the criteria should be the buyer that is not in a hurry and is willing to wait out the process. It's not a bad idea to take back up offers and hang on to them just in case.
Let me add to what ohers have said - There is no reason for the Listing Broker to send multiple offers to the bank as they will not look at them. The bank will not do the work of the Real Estate Broker which is to determine with the seller which offer is; not only the best offer, but the offer most likely to close. For example a cash offer at a lower price likely will not close as that cash buyer can move onto another property much quicker. When a buyer cancels after their offer has been submitted to the bank, that short sale is cancelled and starts over again. So you don't want someone cancelling 3 months into a short sale - you'll have to start over.....
Work with your Broker / REALTOR, they will be an enormous benefit to you.
Best of luck,
Broker / REALTOR
Orange County, CA
Think of selling your home and paying your mortgage off as two separate entities. Because they are. The bank cannot sell your home for you as long as you are on title. The contract to sell is between you and the buyer only. Your lender signs nothing for the sale of the property. They only provide what is called a benificiary statement or loan payoff. When you don't sell for as much as you owe your lender must reduce the amount you owe; send the statement to escrow so escrow can pay them off at the reduced amount. The banks don't consider the amount til you have an offer because they just don't have that much time to mess with it. Imagine if every owner sent in their short-sale amount guessing what the buyyer would pay? How many do you think would be off. Lots of wasted time for everyone.
It is Not a good idea to send additional offers to the bank. First of all you are right it is not fair to the first offer; but more importantly it begins the entire process over again! Many agents do not realize this til it happens to them. Also be sure you talk it over with your accountant and an attorney beofre you do a short sale.
Best of luck to you in your sale.
John & Sarena Villaescusa
Keller Williams Realty
As I said in an earlier post, I have successfully completed more than 40 short sale transcations in the past 18 months as both a Listing Broker and as a Short Sale Negotiator for various other Brokers.
A short sale is an approval from the current lender or lenders to sell the property and release the loan(s) for "less than the amount owed".
The transaction works exectly the same as a standard sale except the bank has to approve the final "net amount" to them and it takes time for that approval. BoA/C-Wide is about 6 - 9 months, Chase/WaMu is about 6 months, Wells Fargo is 37 days. Some of the others are about 3 - 6 months. This will all change in April of next year.
If you are considering selling your property as a short sale, make sure you use a very experienced short sale Listing Broker. Again, take all the emotion of selling your home out of it - this is truly a business transaction. Listen to and take the advice of the Listing Broker you hire. In this market, it can sell quickly if priced appropriately.
Is this property in DP or CDM? Which bank is the lender? Is this an investment property or Primary Residence? Is this the property where you got the Loan Mod?
Broker / REALTOR
Orange County CA
The negotiating of the short sale is between you and the bank. It is not between you, the buyer and the bank. If the bank does not want to accept the offer before them, then they can reject it and the buyer would have the option of upping the ante to the banks approval.
keep in mind that the buyer is going to pay the fair market value of the home, not what you will need to satisfy your debt to the bank. The bank will only get what the home is currently worth.
You're selling a home. Someone is buying it. Assume it's not a short sale. You accept an offer. Then another offer comes in. Well, that's life. You received an offer you considered acceptable, so you accepted it.
Shat's the difference in a short sale? You're selling a home. Someone makes an offer. You accept it. Then another offer comes in. The primary difference is that the sale is contingent upon the lender's approval.
The bank will decide what's "fair" from its standpoint--how much it's willing to lose.
Be honest and open with all involved so that each party knows exactly where they stand. Do not play one against the other though. Good luck.