I know in doing short sales that only one executed offer should be submitted for bank approval. But in speaking with other realtors it was stated you should send all offers in for review by the bank. Is this true?

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Gwendolyn,

Most of the banks that I have worked with can only consider one offer at a time. The thing to remember is that the bank is not a party to the transaction. So - the best way (in my opinion) to process a short sale goes something like this:

1. Offers come in

2. Seller negotiates and settles on one.

3. Seller goes INTO CONTRACT with the one buyer.

4. Get a HUD1 worked up on that contract from escrow.

5. Negotiate with the bank based on that offer and HUD1.

6. If you are unable to come to a resolution, the buyer can walk.  At that point, a backup offer can be submitted.

The banks are not able to judge what a "good" offer is - i.e. - who is likely to close.  That is where we as real estate agents come in.

Unless a bank specifically requests to see all offers (which the biggies - WF, B of A, Chase definitely DO NOT) I only send one offer at a time.

I think many agents in short sales are forgetting that the bank is NOT a party to a contract. The ONLY power a bank has is to determine what they will accept as payoff, and therefore what expenses they will allow to be paid out of escrow.

Hope this helps!

Gwendolyn. The agents you are talking are ill informed. Keep doing what you are doing. You should be confident that the offer your seller accepted is the highest and best and that it will be accepted by the lender. Submitting multiple offers to the lender is wrong in so many way I could write a book on it.

There can only be ONE executed contract at any given time.  The bank is not going to do the Realtors job which is to review every offer with the seller and for the seller to decide on the one that nets the most money and is most likely to close escrow.

One offer from a buyer who is most qualified to close the transaction. I even will go further to state that if you get an offer from a strong buyer (the buyer willing to pay the most AND has strong cash reserves) that you ask them to re-write their offer to something lower than what they were willing to pay and for a price you know you can get the short sale approved at.

Hi Gwendolyn,

My point of view on this issue is why confuse the situation more by continually sending in offers to the bank.  The Seller can only accept one contract.  If you submit multiple offers to the bank what is going to stop them from waiting for another to see if it might be better than the others.  If I were a buyer representative and my Buyer wanted to put in an offer on a property, but I found out that the listing agent is going to submit multiple offers to the bank, I would advise my client to move on.  The possibility of closing on that short sale is slim.

I really appreciate all of the comments on this topic. There are realtors doing short sales and have not been completely trained on how to submit offers to banks.  Which this normally ties the file up and it doesn't get approved by the bank and the house is foreclosed. I believe short sale training should be a requirement for all realtors to have before doing them.

Amen Sister!

As others have stated only one offer is sent to the bank, this last week I ran into agent that stated he will send all offers to the bank.. I informed him that does not make sense.. because the seller can only sign one offer and only one should be sent for consideration, but some are ill informed, not trained and causing more damage and delay...

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