Replies to This Discussion

Permalink Reply by Ali S on March 9, 2010 at 9:56am

Deb,

Thats one of the craziest things I have heard so far. The seller can accept one offer at a time, you can Only sale the property to one person at any given time with a binding contract. Advise sellers and let them make the decision. Keep in Mind bank is NOT a party to the transaction and ONLY a lien holder. When ever you have multiple offers the first thing that banks think is that you have the property listed low..second is that Bank will now read your offers and should not choose an offer for your seller. Educate your seller and let them make a right decision. As for back up offers keep them on file and once and so if you loose the original buyer then you communicate with them and see if you can make that offer turned into a contract before sending to the BANK.

Permalink Reply by Steele V. Propp on March 9, 2010 at 10:10am

Not an attorney but if you have showed the offer to the seller you have presented the offer. Presentation to the bank is not the same thing in my opinion. You have explained that this is a back up offer. What part of back up offer does this agent not understand.

Perhaps for future consideration you might have your seller sign a statement to the affect that only one offer is given to the bank at a time remembering that the bank approval is a condition of the sale. They are not a principal to the transaction. Such a seller written instruction might give some extra ammunition. The last thing the seller wants is to be accused of selling the property twice.

On one of the forum or blogs another agent wrote a good piece that a listing agent doesn't have an obligation to present extra offers to the bank in a short sale situation. I will have to see if I can find it and share the points made.

Steele

Permalink Reply by Deb Orth on March 9, 2010 at 10:35am

Thanks, Steele.

I totally agree that this agent is being a knucklehead but of course she kept quoting Lem Marshall so she thinks that makes it the absolute truth.

Looking forward to seeing the article you mentioned.

Deb

Steele V. Propp said:

Not an attorney but if you have showed the offer to the seller you have presented the offer. Presentation to the bank is not the same thing in my opinion. You have explained that this is a back up offer. What part of back up offer does this agent not understand.

Perhaps for future consideration you might have your seller sign a statement to the affect that only one offer is given to the bank at a time remembering that the bank approval is a condition of the sale. They are not a principal to the transaction. Such a seller written instruction might give some extra ammunition. The last thing the seller wants is to be accused of selling the property twice.

On one of the forum or blogs another agent wrote a good piece that a listing agent doesn't have an obligation to present extra offers to the bank in a short sale situation. I will have to see if I can find it and share the points made.

Steele

Permalink Reply by Steele V. Propp on March 9, 2010 at 10:43am

With respect to Lem and attorneys in general, I can talk to 3 attorneys and get a half dozen opinions (they tend to cover themselves wth "on the other hand").

Always was nervous that they just give opinions as opposed to answers :>)

Steele

Permalink Reply by Stephanie Lim on March 18, 2010 at 12:36am

Sounds like that attorney for some reason believes that the bank is the seller? And doesn't understand that you send CONTRACTs to the bank, not offers? The seller is the seller and I present all offers to the seller. The seller then makes the final call on the offer and whether to sign off on it and have it become a contract. Then the seller makes the final call on whether to send the contract in to the bank after I explain all of the cons.