Question Details

Eric, Home Buyer in Port Saint Lucie, FL

i need some help. My wife and I recently signed a contract on a house in short sell. Our offered was 2k less

Asked by Eric, Port Saint Lucie, FL Sat Feb 14, 2009

then the asking we gave a deposit and got pre-approved for a Mort. etc we where then told it could take up to 2 months to get answer.
after a month we received a phone call from our agent telling us someone had made a higher offer and that the house was still on the market. We where shocked we realized our mistake we did not read the contact closely enough in the addendum had a clause that the property could stay on the market and except offers. We where not told of this we would not had agreed if we knew ( our fault!) We have now put in another offer 5k over the asking price with the stipulation that the
property be taken off the market.
we where told that they would not agree to that. is it even legal to take offers on the house and not alert the potential buyer of that . it would appear to me that this is all just a game the listing agent can then just keep taking higher offers and use that with anyone bidding on the house. This unethical do we have any recourse??

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I often say shortsales are not for the faint of heart. I hope you learned that the contract needs to be read before signed.

On another note, for most shortsales the listing price is not worth the paper it is printed on. A seller and listing agent come up with that price but it may not be approved by the lender. Your offer should be submitted with justification for the offer, such as an inspection report with an estimate of repairs from a General contractor. I have found a lot of General contractors will do this for free if I give them the work when the contract is accepted. A CMA should also be included with the price based on the CMA minus repairs.
I normally subtract some other things from the price and justify them but this is mainly for investors trying to get the house at the best price.

Never fall in love with a shortsale, never give them more than two weeks to approve the sale. If the listing agent has done their part a shortsale can be easy, if they have not you should walk away.
1 vote Thank Flag Link Sat Feb 14, 2009
This is a common practice in short sales. The truth is that most lenders insist (and have an addendum like the one you signed), stipulating that they can keep marketing the property until the close of escrow.

I doubt that there is anything you could have done, because even if you offered $5k more, they'd do the same thing, hoping to get more.

You need to realize that in short sales these lenders and investors are losing thousands of dollars. It would be like a company in which you owned stock. You need to sell, you are going to lose 30-50% of your investment, wouldn't you try to make as much money back as possible?
0 votes Thank Flag Link Sat Feb 14, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
Dana is correct only an executed contract stands confirmed where all parties have agreed to terms and conditions closing date set.

Many foreclosures, and short sales have drama! Bank apparently taking bids. We instruct our clients although we have submitted a sales offer "put best foot forward" and keep looking not all offers are accepted.

RULE of thumb: if a bank likes an offer their response executed contract is within 7 -10 days.
Web Reference:
0 votes Thank Flag Link Sat Feb 14, 2009
I agree with what the agent has already said. If you feel you have been party to an unethical practice, you can contact your local real estate commission.
0 votes Thank Flag Link Sat Feb 14, 2009
If you do not have a contract signed by both parties,you do not have a legal agreement. Your deposit should not have been cashed until this contract was fully executed. however,your agent should have made you aware of this clause. When I am writing an offer,I basically go over it line by line with the buyer. That's called looking out for the customer's best interest and it appears your agent did not do this for you.
0 votes Thank Flag Link Sat Feb 14, 2009
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