I have made two offers on a short sale house in Alamo. Both times, my offers weren't submitted to the bank

Asked by Will, Dublin, OH Sun Jan 18, 2009

for review. The most recent offer was at full price which County Wide Bank listed as the approved selling price. The listing agent said the sellers accepted another offer because the sellers liked the couple who submitted the offer. The selling agent said the bank will only review one offer at a time. How can I get my offer to the bank for review?

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6
Bob Georgiou, Agent, Danville, CA
Thu Sep 29, 2011
Will,

Unless you become the crazy buyer and start throwing monsy at the seller, its best to be patient. If the seller likes the buyer then little can be done since they can and will engineer their transaction around your contract. (it is commonly belived that there is some implied guarentee of secrecy that goes along with every contract, the fact is there is none.) If you want the proeprty that bad backup is an option though it will only reinforce the first buyers resolve knowing that this particular proprrty is in demand.
Web Reference:  http://bob2sell.com
0 votes
Andrea Scott, Agent, Danville, CA
Tue Sep 27, 2011
Hey Will,

I'm sorry to hear about your difficulties, I know how disappointing this must be.

Make sure that your Realtor is local to Alamo and a CDPE - Certified Distressed Property Expert. This would mean that (s)he works extensively in representing the sellers of short sales as well as buyers. This is imoportant to you because (s)he will know exactly what the bank needs to see and how to position you and your offer as the winning bid. The hyper-local part is also important because the level of comfort the listing agent has with your agent can mean all of the difference between losing a bid and moving into your new home - make sure that (s)he works with these folks day in and day out.

Andrea Scott
Realtor, CDPE
Alamo, CA
0 votes
Steve Reilly, , Danville, CA
Fri Feb 6, 2009
Will,

The truth is the banks only want to see one offer on a short sale. What you must do is convince the seller's that you're the most compelling buy and that you will perfrom. The seller's don't care how much the offer is, they just want the bank to accept the short sale. So it might be showiing you have the financing, tell a story about your family and how you can envision living in the house, make the emotional argument if you can't offer the highest price.
0 votes
Paula Bean, , Orlando, FL
Sun Jan 18, 2009
Will,
How do you know your offer wasn't submitted to the bank? Do you have a buyers agent and the short sale is listed by another different agent? With a short sale, the seller, not the lender has primary control. If they did not like your offer, there would have been no reason to submit it to the bank - especially if another offer that would cut the short sale loss was on the table. Some sellers are required to pay taxes on the deficiency amount so they of course would want the highest and best price.
Something is up, but in order to find out what it is, your agent needs to communicate with the sellers agent, especially if you offered the preapproved sales price.

Although it was said that attorneys are not used for closings in CA, that doesn't mean that you can't have one to advise you and help you sort through what is really going on. We don't custumarily have attorneys closing transactions in FL either, but I've had some buyers want attorney review, or a contingency on an attorney approval.

Either way, it seems like you need someone working in your best interest who communicates more clearly with you. If you are in Dublin, IRELAND, it is even more important that you seek assistance since the laws and customs of real estate in the States are so different than they are overseas.

Hope this helps,
0 votes
Herman Rod, Agent, Benicia, CA
Sun Jan 18, 2009
A point of clarification. Unlike many areas back east, here in California, we don't use attorneys in conjunction with a real estate sale.

As Bob mentioned, the sellers (and their agent) are the ones who drive the entire transaction. The seller's lender never deals directly with the buyer, for they aren't a party to the contract. Their only involvement is in telling the seller how much they'll agree to reduce the loan payoff by in order to facilitate the seller's ability to sell the property at market value. The short-sale lender doesn't sign any of the part of the contract. They only look at it to determine if the seller has agreed to negotiable items that they're not willing to absorb into their short-pay amount.

That said, the seller and their agent, if they're acting responsibly and ethically, should ALWAYS inform the short-sale lender if they have other offers, particularly if any of those offers will enable the lender to reduce the amount of the short sale payoff. If they don't, they're defrauding the seller's lender by withholding details of a contract that could be more favorable to their bottom line.

It's true that the seller's lender will only review one offer at a time -- they don't want the listing agent to fax over six offers and have to ferret through them. But they most definitely want to see the Strongest Offer of the bunch or at the very least to be notified if a superior offer comes in in the midst of their review of what previously was the strongest offer.

The short-sale addendum of our standard CAR contract specifically says that the seller has the right to review other offers, even if they've already accepted another offer. That clause is there specifically to ensure that the lender doesn't unknowingly agree to the terms in one offer while a better offer is sitting there in back-up position.

If you feel that you've been wronged, I would definitely have your agent pursue it with the seller's agent and make sure that your offer is not superior to the one the sellers are promoting to their lender.

Good luck!
Web Reference:  http://homesection.com
0 votes
Bob Brandt, Agent, Schaumburg, IL
Sun Jan 18, 2009
Since the bank does not own the home, you need to go through the seller. If they sign a contract they make it 'contingent on approval of the short sale' by the bank.
You can leave your offer on the table as a backup, making sure the sellers and their attorney are aware of it. Your agent and your attorney can assist you with the technicalities.
Web Reference:  http://www.realtybob.com
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