Replies to This Discussion

Permalink Reply by William Chea on February 1, 2011 at 3:06pm

NOT A BLODDY THING!

 

You are in a contract with the current buyer and seller - right? Thats it. Its not up to the bank as the bank is not the seller. Simple and plain.

Permalink Reply by Steele V. Propp on February 1, 2011 at 3:10pm

Your contract is with the seller, not the bank.  The agent has no obligation to submit such an offer.  In fact, I would let this other party know that they could be charged with contractual interference as well as extortion (threatening in order to get their way).

 

This agent should be talking to the company attorney or the attorney of the Board of Realtors.  And that attorney better know how short sales work.  There are a lot of misconceptions on these.  The bank is not a party to the transaction.  They play a role of approving or disappoving an offer, but that is more of an interested bystander.

 

So I would say that if you are told that this person should be allowed to present this to the bank that the attorney is an idiot.  There, I said it.

 

Steele

Permalink Reply by James ferebee jr on February 1, 2011 at 3:11pm

I would say that the other buyer can take a flying leap he walked becuase he did not want to wait or come up what ever your responsibility is to your client and he or she wants this done so they can get on with their lives you have an approval and are ready to close. These deals would never close if this was allowed to happen. Someone finds out that the contract price is so and so now a new buyer wants to offer 100.00 more???
Give me a break..
Take the offer as is and close on it you owe that to your client...

Jim

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 1, 2011 at 4:43pm

You are in contract with a buyer.  The bank has no say EXCEPT, they could revoke the short sale approval if they see a substantially higher offer that is solid and will net them a lot more money (effect a smaller loss).  I have seen situations similar to this and buyers / buyer's agents have sent offers to banks prior to closing the approved short sale - however - I have never seen a bank revoke an approval based on a new offer.

 

The bank knows you are in a contract, albeit subject to short sale lender approval, and they will also consider that the buyer submitting a new offer walked away once and may very well walk away again.

 

Get to closing with your current buyer and your agent cannot lose their license unless they did something illegal or unethical.

 

Best of luck to you,

Thom Colby

Broker

Newport Beach CA

Permalink Reply by Nathan Watanabe on February 2, 2011 at 2:19am

In addition to the previous comments a higher price is not necessarily the better offer, the better net is the better offer including time,  you said that you have an approved SS with the closing date of 2/23/11.  If you submit another offer you will have to get the “new” offer approved again, so you will have to add the additional time for their decision again and there is no guarantee that BoA will approve the 2^nd offer even though it is a higher price offer.  Also, will it appraise at the higher offer especially after the time it will take to get it approved again?

Permalink Reply by Nancy M. on February 2, 2011 at 4:41am

Thanks for the comments-to clarify we are the buyer in the short sale.  The previous buyer has been informed that there is nothing that can be done except hold their offer as a back up-hopefully he will back off.

Permalink Reply by Michael J Wollen on February 7, 2011 at 6:18am

In my opinion, there has to be a point at which a transaction is closed to new offers.  At this stage you are in a pending status due to offer and acceptance.  Pending status is that point.  She sould not lose her license based on this scenario.  She needs to inform the other buyer that the an offer has been accepted and seller is not accepting neew offers.  To cover the bases she should call the bank and confirm so she is on solid ground if she is uncertain at this point.

Permalink Reply by Steele V. Propp on February 7, 2011 at 6:38am

But remember it is not the bank's decision on whether to look at new offers.  As you stated the offer is pending and if and only if the seller allows it, can a backup offer be considered.  And that would stay with the seller.  It would not go to the bank unless the first offer fell through AND the seller decided to accept the second offer.

 

Putting this person in touch with the underlying lender would be more of a cause to lose a license as it is encouraging contractual interference.   An agent giving contact information is asking for even more trouble.  At least in my opinion.

Michael J Wollen said:

In my opinion, there has to be a point at which a transaction is closed to new offers.  At this stage you are in a pending status due to offer and acceptance.  Pending status is that point.  She sould not lose her license based on this scenario.  She needs to inform the other buyer that the an offer has been accepted and seller is not accepting neew offers.  To cover the bases she should call the bank and confirm so she is on solid ground if she is uncertain at this point.

Permalink Reply by Keji Ogunleye on February 7, 2011 at 7:07am

Absolutely nothing.. You are under contract with closing date...Why did the agent not let them know the property is no longer available...

Permalink Reply by Michael J Wollen on February 7, 2011 at 9:45pm

I was refering to the agent receiving the vail threat but you are right that nobody needs to contact the bank.

Permalink Reply by Nancy M. on February 8, 2011 at 6:45am

The agent informed them numerious times the property was no longer available, they continued to pursue I guess in case it was to fall thru with us...

Keji Ogunleye said:

Absolutely nothing.. You are under contract with closing date...Why did the agent not let them know the property is no longer available...

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 8, 2011 at 6:51am

Many of us have responded to you - but, at the end of the day, you need to be consulting with your agent / broker for advice as they have all of the details of yoru transaction.

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