Can I still make an offer in a short-sale after other offers has been submited to the bank already.?

Asked by Elizabeth, Kearny, NJ Sat May 23, 2009

I saw a propertie that was in short sale posted 10 days ago however, I was told that an offer was submitted to the bank already. Although I read that usually banks will wait and see if a better offer comes in .Does it mean I can still submmit my offer or not?

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4
Manuel Couto, Agent, Kearny, NJ
Tue Jul 7, 2009
Any written offer should be presented to the owner, through their agent, and the agent has a responsibility to let the owner know of the offer. It is up to the OWNER to accept or not accept any offer. The bank acceptance of a short sale is a contingency of a contract, pretty much like you getting a mortgage. If you wish to submit an offer, just let your agent know, write it up and let your agent present it to the other agent. Sometimes the owners request no additional offers or showings. The listing agent then has to follow the owners request.

Remember that short sales do not happen overnight and take time. You may want to submit your offer and keep on looking at other homes in the area. Kearny has been pretty active the last 4 months and values appear to be stabilizing.
1 vote
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sun May 24, 2009
Hi Elizabeth, to reiterate the advice you have already received, "yes", you can submit an offer. As Bill points out, offers should go from your agent to the owner's agent, who will review with the owner who must sign any offer presented to the bank. I am working with a short sale right now where this very scenario played out....Accepted contract #1 became frustrated with the delay and walked away; Accepted contract #2 with bank when we saw the property which was very much available to be shown. We submitted an offer, not sure of what the outcome would be, and it was accepted bumping out the one on the table. We are now under contract and hopefully all will proceed smoothly. But as Tim makes clear, you can be on either end of this scenario, and so it is just as possible that we might be bumped out as well.

I think in our case the reason why the transaction seems to be moving better than expected and along more conventional timelines is that we happened to enter the scene after months and months of the process chugging along with the bank. Also, in this case there is a short sale specialist whose job it is to expedite the process with the bank.

Good luck to you!

Best,
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference:  http://www.feenick.com
0 votes
Bill Eckler, Agent, Venice, FL
Sun May 24, 2009
Elizabeth,

It is important to understand the short sale process.

Since the destiny of a "short sale" remains initially in the hands of the current owner with the final approval coming from the bank, only those offers accepted by the owner make it to the bank for consideration.

There can definitely a delay associated with this process, however not with the intent to wait for additional offers. There is a process that requires time that includes a number of steps including, a letter of hardship, financial paperwork, an application, a property appraisal, appointment of a mitigator, etc.

Since there is no certainty with any offer, it is our recommendation that you make contact with the owner through your real estate professional to get an update on the status of the property. If the owner is still entertaining offers you may want to consider "throwing your hat into the ring." This decision is solely in the hands of the owner.

Good luck
0 votes
Tim Honeycutt, Home Buyer, Bloomfield, NJ
Sun May 24, 2009
Yes, you can. Something similar is happening to me, Elizabeth, except mine is the offer that was accepted by the sellers and actually had the signed contract. Additionally, there is nothing to stop some other interested party in making a even better offer than yours. There is really nothing to stop the bank from accepting a better offer all the way up to the moment you actually close. I think it is a total shame and it is leaving a very bitter taste in my mouth.
good luck,
Tim
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