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? 

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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.

Who is the seller? The bank?


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)

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?

Yes, the seller wanted me to submit both offers because his file had already been closed once for lack of an offer.  He felt he was safer with the bank having both offers in hand.  As I said, I do not make the decisions for my clients.  I advise them as to the possible repercussions of any decision they make - and let them decide.  In this case, there is no downside for my seller to having signed both offers and submitted to the bank.  Both buyers are more committed, possibly, because one is not just a back-up.  My seller doesn't care which offer the bank chooses, as there will not be a deficiency judgment against him, and even if there were, he has final say as to whether he accepts the bank's decision.  He can also pull any of the offers from consideration, at any time.

I don't "have my sellers" do anything, Jeff.  I advise them to the best of my ability and I carry out their wishes.  Of course, in a "normal" sale I would never advise my seller that he can sign multiple offers.  That's not allowed if the sale is anything other than a short sale in North Carolina.

Sorry but I disagree 100% on this tactic.  You advised your client that there is no downside to submitting both offers?   A short sale is not any different than any other sale that has a contingency attached.  WOuld your seller accept two normal offers that had financing and inspection contingencies and say they dont care which one gets it?  A short sale is a contingency and no different than any other contingency.  

Submitting more than one offer is never a good idea, getting the best offer that has the best opportunity to get approved is what you should be doing, not throwing multiple offers at the bank and hoping one sticks.

I have had mutiple meetings and discussions one on one with high level short sale managers, VPs and even CEOs of banks and they all say the same thing, get the best offer that you can and send it to the lender

Which is exactly what we did.  We submitted the best one in my seller's opinion (and mine). Higher net to bank & cash deal with committed buyer. But, we also submitted another offer - which is my seller's prerogative as written into our Short Sale Addendum and, as directed by the NC Real Estate Commission.  Are you proposing I either omit telling my client about all his options, or somehow not allow him to do what he feels is best for him?  What would you have told my client about the downside to him of having multiple offers for the bank to choose from instead of just one?


     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.

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