I recently got a backup offer on a house under a short sale with the Bank of America. My clients have asked me to make sure Bank of America knew that their back up was $11K more than the seller's accepted offer. Any ideas on how I can let them know. The seller agent is not interested in helping.
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Randy, homeowners in a negative equity situation, don't necessarily have the same goals as a homeowner that is doing a traditional sale. Highest means nothing in short sales as many times sellers get no money at closing. Many sellers take a lower cash offer that will close quicker. You can't assume to know what a seller's motivation is. Please keep in mind you are negotiating with the seller NOT the bank.
Equator makes no difference, banks don't want a constant flow of other "offers". Are you saying your offer was submitted before the lower offer was accepted?
We submitted more than list price after the selling agent told us that he had an offer. Then he said submit your highest and best offer by 5 o'clock the next day (told us 3 hours before). I think he may have told the other people who had submitted the offer what ours was. Anyway, my clients lost out. The next day they submitted a backup for 11K more than list. I understand there is a way to get the backup on Equator in the comments section. Selling agent could care less.
Forgot to ask.. Did the seller accept your offer? Did they actually sign it?
Thanks for the reply. Yes, the seller accepted the offer as a backup.
Our first offer was greater than list and was higher than the other offer. I know this by the actions of the other agent. Then the next day he asked for us to submit our highest and best offer, so we increased it 5K. Then we found out the other offer was accepted. So we submitted a back up for 11k more than list.
Still, a back up is a back up. It does Not come into play until the original contract is negotiated all the way out, And if it doesn't close. A selling agent will not, and should not, be sending info on back up "offers". Are you asuming the other offer was at list price?
Back up, is back up. The original contract gets played all the way out first. No agent/owner should be mucking up the works with an additional offer/contract.
I understand, but BOA is different because of Equator system. Besides selling agent did not negotiate contract for highest and best price. Everything was fishy to me. Thanks for the reply. Other short sales wanted as many offers as possible and bank took highest.
How is BOA different because of the Equator System? Equator is simply a tool that is used to process the short sale and is not BOA specific, there are many lenders on Equator.
What "other short sales wanted as many offers as possible and the bank took highest" ? The bank does not accept offers, they review contracts and once a seller has signed a contract, they have a legal and binding contract.