Maybe I was napping, but are the larger lenders (Bank of America, Wells Fargo etc) now willing to look at more than one offer, signed by both buyer and seller, at the same time? Last I knew that was not
accepted practice, but I have brought a buyer to a short sale and both our offer and the offer of another buyer have been signed and appear to have been submitted to Wells.
Is this now ok?
**********************************
like buttons
Replies
Multiple offers can be signed by the seller in North Carolina and presented to the bank/3rd party lender. Here is the text, taken from our state of NC Short Sale Addendum (required for all potential short sales). Pay particular attention to section (c).:
Other Offers/Additional Contracts:
(a) Rules of the NC Real Estate Commission require offers from other buyers received by the Seller’s Agent to be presented to the Seller. The NC Real Estate Commission also requires the Seller’s Agent to inform Lienholders of all offers and contracts of sale on the Property received after a request for a Short Sale has been submitted to any Lienholder.
(b) Seller hereby represents to Buyer that there is or is not an existing contract of sale on the Property ("Existing Sales
Contract")
(c) Offers from other buyers may be accepted by the Seller and become sales contracts ("Additional Sales Contract") Seller or Lienholders may, prior to the Notice of Approval of Short Sale, elect to substitute any Existing or Additional Sales Contract for approval by Lienholders and withdraw this Contract or any Existing or Additional Sales Contract from consideration by Lienholders.
(d) Unless this Contract has been terminated, Seller shall promptly notify Buyer in writing of the occurrence of any of the
following events:
(i) Seller’s acceptance of any Additional Sales Contract; or
(ii) Seller’s or Lienholders’ substitution of any Existing or Additional Sales Contract for this Contract for Lienholder
approval; or
(iii) Short Sale Approval of any Additional Sales Contract; or
(iv) Seller’s closing on any Existing or Additional Sales Contract.
(e) If not sooner terminated by Buyer or Seller hereunder, this Contract shall become null and void upon the completion of
closing of any Existing or Additional Sales Contract whether or not Seller notifies Buyer of any such closing, and any
Earnest Money Deposit shall be refunded to Buyer.
Jill,
The bank will only review one offer at at a time. So if they both were received, the servicer should seek clarification on which offer to review.
Brett@ishortsalenow.com
310-564-6389
www.ishortsalenow.com
No it is not, a seller can not sell to more than one person. The listing agent screwed up!
Well Jeff, both contracts are subject to third party approval, so unless the bank approves both, the seller is not in danger of selling the house twice.
I am just used to the banks insisting that the seller consider the offers and chose the best before they submit.
I don't actually know that both have been submitted, but have some reason to believe they have because the agent had the sellers sign both.
Just because both contracts have been signed by the seller, does not mean they have both been submitted to the bank. I have a situation now where I received 2 offers within 30 minutes of each other - one was considerably higher and a cash deal. Seller signed both on the same day. BOA short sale handled through Equator - so BOA directed me to initiate the short sale using the "best" offer. I'm still waiting to be able to submit the 2nd offer. BOA knows it exists, but there is no way to submit it as they have not assigned a task for that yet in Equator. I did put it in the property library and informed BOA it was there if they cared to review it. They are proceeding with the 1st offer that was submitted with the initiation, as if the 2nd offer doesn't exist. So, done by the book, multiple offers have been presented & signed by the seller and passed along to the bank/3rd party - but, in practice, it's as if the 2nd offer is a back-up and not an "additional sales contract". That's how BOA seems to be treating it, anyway.
Who decided which was the best offer to submit? You or the seller?
My seller, of course. That remains the same - I merely advise. My seller makes the decisions.
And your seller wanted you to submit both offers? Why not just recommend the seller reject the lower offer just like they would in an equity sale? Not quite sure why you would want the bank to make the decision for the seller when the bank does not own the property. Your State says multiple offers may be signed by the seller but does not say MUST. We always use an addendum to the contract if we have multiple offers that says the second offer is to be held in a back up position and will not be submitted to the lender until the first offer is no longer valid.
The bank does not own the property, they do not sign contracts, they are merely there to approve the contract so that the short sale approval contingency can be removed.
Do you have a seller sign two offers on normal sales that have contingencies like home inspection, finance etc?
Who is the seller? The bank?
Jeff,
It is a short sale, the seller is the current owner of the property.
Both contracts included language referencing short sale addendum, making the final deal subject to the
approval of a third party (the lender)