I'm having concerns about my agents loyalty. I put in a offer over 2 wks ago and just now found out that it

Asked by Yavonne, Minneapolis, MN Fri Jul 25, 2008

wasn't submitted! How do I find the bank who is reviewing the proposals for the house so I can make sure this doesn't happen again ? In addition to that I was told that its completely up to the seller which offers to consider and not the banks even though its a quick sale.... Something is fishy with this because my bid was $10K over the asking price!

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7
Susan Hoffla…, Agent, Shoreview, MN
Fri Jul 25, 2008
As an exclusive buyer's agent who has been dealing with a fair amount of short sales and foreclosures this year, anything goes when it comes to these transactions. And, unfortunately for you, not much is on the buyer's side. It's very possible that there were other offers that were entertained and yours wasn't. EVERYTHING in a short sale/foreclosure situation is at the discretion of the bank/lien holder. The original sellers have some say, but they are not the ultimate decision makers. And, it can take FOREVER!! I just had a transaction where my buyers bid $5000 over the list price and they were out bid by $20,000 over the list price. There are lots of bargains out there, but there are lots of properties being snatched up, too. We have had declining inventory for some 16 weeks now.
1 vote
Scott Hutchi…, Agent, Lakeville, MN
Fri Jul 25, 2008
Your offer is subject to a "short-sale". It is up to the seller which offers he or she wants to sign/execute, but ultimately it is up to the lien holder(s) whether or not they want to accept the terms of the "short-sale". Short-sale just means that that the proceeds from the sale are going to be short (the house is worth less than what is owed). There is not much conformity to how listing agents will present/deal with offers, but I can tell you that loss mitigation departments are overloaded, and this process may take a long time. I would not jump to the judgment that your agent is not performing his or her duties.... as their control over this will be minimal. Loss mitigation departments often need faxes sent several times before they acknowledge receipt. The list price may not be an achievable price, so keep that in mind.
1 vote
Dallas Texas, Agent, Dallas, TN
Fri Jul 25, 2008
Confused your offer not submitted are you stating from your agent ? or the listing agent? The listing agent may have strict guidelines from the lender or from the 3rd party contracted by the lender what offers to submit. Although you bid may have been $10K over the list price did it meet the guidelines specified?
all foreclosures, pre foreclosures, short sales have drama.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
1 vote
Don Tepper, Agent, Burke, VA
Mon Aug 4, 2008
You say you put in an offer over 2 weeks ago, but it wasn't submitted. Wasn't submitted to the bank? Or to the owner? From your follow-up, I'm assuming it's the bank.

In that case, there's nothing wrong with your agent's loyalty. Your offer probably went to the seller. Ask your agent to be sure. Then it depends.

In some instances, banks want a single offer, so they can approve or disapprove it. In other cases, banks want to see multiple offers. (Technically, though, there can only be one ratified offer, with others as backup.)

So it's possible that your offer went from you to your agent to the listing agent to the seller. And then the seller did not accept your offer. Or, as is noted in other answers, the bank may have specific criteria regarding which offers it'll even consider.

As for your bid being $10,000 over the asking price, that really doesn't matter. Sometimes asking prices are set low to encourage multiple offers. Suppose there were 5 offers on the property, at $20,000, $16,000, $14,000, $12,000, and $10,000 above the listing price. Yours would be the lowest offer. As is noted below, price isn't the only factor, but it is one.

To return to another point in your question, yes, it's up to the seller regarding which offers to consider. Yes, that's true. It's the seller's house.

To clarify another point: It's a "short" sale, not a "quick" sale. That's not just wordplay. It's important because short sales are anything but quick. It means the lender is coming up "short" in the transaction. They often take far longer to do than a typical, traditional sale.

Talk all these issues over with your agent. While you may or may not want to continue with him/her, nothing you've presented suggests that there's anything wrong with your agent's loyalty or professionalism.

Hope that helps.
0 votes
Pam Kraska, Agent, Savage, MN
Mon Aug 4, 2008
I agree with you. I have dealt with these many times over and usually it is the best interest of the agent to submit every one. Doesnt matter what we think, as the bank has different criteria and may surprise you. It's a lot of work as you have to call constantly and check with the agent. If it's my listing, that means I need to submit a HUD or Settlement sheet with each offer meaning I have to go over to the title office each time and have them draft up one of these. On my last transaction I tried to do everything I could to help both the bank and the seller and I ended up submitting 9 offers to the bank. All were happy because there was effort on behalf of each agent.
Web Reference:  http://www.kraskaplus.com
0 votes
The Hagley G…, Agent, Pleasanton, CA
Fri Jul 25, 2008
The listing agent not submitting your offer is not your agents fault. I do a lot of short sales...I price low to generate multiple offers.....and we choose the best one to submit, with 1 or 2 as a back up. Price is not everything.....if a buyer comes in asking for the world, their offer may not be the one I submit....it all comes down to what the bank nets.

It sounds like the real issue is that the listing agent did not inform your agent immediately when another offer was chosen. This does not sound like your agents fault. Ask him to explain.
Web Reference:  http://www.cindihagley.com
0 votes
Jackie Funk, Agent, Minneapolis, MN
Fri Jul 25, 2008
Hi Yavonne: Something made you choose the agent you're working with. Before jumping to conclusions, I would recommend you ask your agent to ask the Listing Agent for proof that your offer was submitted. You do mention that your offer was NOT submitted -- what led you to believe that your offer was not submitted? Did your agent tell you this and could they have been misled also?

Short sales and foreclosures are for the most part a nightmare for everyone involved. They are mostly attractive to buyers that have the time and patience to wait for the process which can range from 2 weeks to 5 months or MORE! You can be sure this does not happen again by stating YOUR TERMS clearly on the purchase agreement and adhering to them. Just know that the Lender does not work to anyone's timeline, but their own. While it is in their best interest to approve things quickly, most of them are just too overwhelmed with inventory.

In closing, if you doubt your agent is not working on your behalf, do your best to communicate your concerns to her/him. While there may be a few rotten apples out there, I believe most of us work very hard for our clients and want the very best terms for them.
Web Reference:  http://JackieFunk.com
0 votes
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