Multiple Offers On A Short Sale Already In Review.
What do you guys do when you submit a complete short sale package (with offer) and a week or two later you get another offer. Do you submit the current offer (which is better than the first)? My rule of thumb is to wait for the complete review of the first and then submit offers. I do NOT want the negotiator/investor reviewing multiple offers and coming back to me. The process is already slow enough. Am I wrong?
Replies to This Discussion
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Permalink Reply by Eric M. Boyd on
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I'm with you. If there's already a contract on the table and active with the negotiator, then I urge the seller to hold future offers as backups.
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Permalink Reply by Mori Langshaw Sr on
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Cool. Thanks Eric
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Permalink Reply by James Lockard on
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Usually the bank only wants signed contracts as part of the package. You cannot have multiple signed contracts on one property. Keep all other offers as backups in case the first buyer walks during the process. You are right, never submit more than one offer to the bank. Even if you have a better offer and the bank accepts the first(lower) offer, who are you benefitting by showing the bank a back up offer?
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But guys, the 2nd offer is higher, hence, higher commission...hahahahahahahahahahahahahahahahaha. IM JUST KIDDING! Seriously!
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Permalink Reply by Petra Norris on
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I'm with James here, banks only accept contracts and not offers on a short sale. Multiple offers should be treated as back up offers only and never be submitted to the bank even if it is higher. The contract is with the buyer and homeowner and not the bank. I request with a completed short sale package that the lender removes the 3rd party contingency.
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Permalink Reply by Bryant Tutas on
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Mori, The banks can't even get one contract right. Negotiate the best deal possible. Go under contract. Get the deal accepted and closed.
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I wanted to add. If the first contract is way too low then the seller should have never accepted it to begin with. UNLESS they are up against an auction date.
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Permalink Reply by Kent Dills on
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Mori,
As attorneys always say when you ask them a question, and the answer to your question is - "it depends".
It depends on if the offer you have submitted to the bank is a good offer or not. I recently did a short where I submitted the only offer I had at the time but knew it was low and had expressed the same to the buyer's agent. But the buyer's agent was representing relatives of hers as the buyers and was trying to get a steal of a deal and wouldn't adjust up to what I thought was reasonable. So I submitted the offer and went looking for a "backup" offer. It just so happens I got multiple folks interested a week or two later and selected the best offer and submitted it as the "backup" offer. OBTW - I disclosed to buyer's agents on "backup" offer that they were vying for "backup" position but that they should take the list price seriously if they wanted to do right by their clients. The selected backup offer took the list price seriously (whatever that means ;-) and so the bank declined (versus countered) the first offer as "too low" and accepted the "backup" offer outright.
I felt like (and still feel like) that this was the best possible outcome for my clients and the best possible way to exercise my fiduciary duties/responsibilities. The bank, my client, and the buyer were all very happy too!
On the other hand, if you feel like you have a good offer and the subsequent offers are only better in trivial ways, then you might want to do as you suggest and just let your offer ride.
I'm sure that other folks will feel differently about this than I and that's okay by me. I own my own business and do things MY WAY.
Peace out! ;-) -
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Here's my deal. Value ~$204k-$214k.
Offer one = $204k with 8k Closing.
Offer two - $205k with $9,225 Closing.
I let #2 know that #1 was a better offer because it will NET the bank more and I will hold on to it for back up. She then started selling her client on how she REALLY wants to be in the area and loves the house, we can up the price. She upped it to $209k with $8k closing. Coincidentally, the bank calls me today and says, "I just wanted to let you know that the offer has been approved. I don't prepare the approval letters here but I submit the request to send you the approval letter, what fax number should I send it to...you should have that within the next 48 hours."
Stay the course right? -
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Permalink Reply by Anna Mackey SDHS on
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I say yes, stay the course if you already committed to offer #1 and your seller signed it...
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Yes, absolutely stay the course, Mori. You have an approval coming, so get it, close the deal, and work on the next one. Congrats on getting the approval!
Mori Langshaw Sr said:Here's my deal. Value ~$204k-$214k.
Offer one = $204k with 8k Closing.
Offer two - $205k with $9,225 Closing.
I let #2 know that #1 was a better offer because it will NET the bank more and I will hold on to it for back up. She then started selling her client on how she REALLY wants to be in the area and loves the house, we can up the price. She upped it to $209k with $8k closing. Coincidentally, the bank calls me today and says, "I just wanted to let you know that the offer has been approved. I don't prepare the approval letters here but I submit the request to send you the approval letter, what fax number should I send it to...you should have that within the next 48 hours."
Stay the course right? -
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Permalink Reply by Maya Thomas on
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I cross out Multiple Contracts on the addendum to the listing agreement. I cross it out on the SSA-2 also. I never send more than 1 offer to the bank. If I think I can't get it approved I tell my seller and try to get the offer up to atleast a minimum of what I think I can get done.
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