CAN SOMEBODY CONTACT ME REGARDING A BACKUP OFFER AND EQUATOR I DO NOT UNDERSTAND WHY BANK OF AMERICA IS STALLING THE SHORT SALE
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CAN SOMEBODY CONTACT ME REGARDING A BACKUP OFFER AND EQUATOR I DO NOT UNDERSTAND WHY BANK OF AMERICA IS STALLING THE SHORT SALE
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No that is not a breach of contract sofy. The bank doesn't call the shots on the P&S. The seller does. So if the seller allowed the buyer a week to respond then that's ok to do. The banks job is to release the lien and provide a payoff amount. The bank can issue any addendum or threat they want and the only thing they can do is close the file if they dont' like the response. They can say they want a response by 5:00 PM but if it doesn't happen and the buyer and seller come to an agreement after that and the file hasn't closed out, the bank can easily just keep that file going. You have no way of knowing what that first P&S said or what the terms were.
Good point Smitty, those addenda are certainly not for our CYA. Sofy, please keep in mind that the bank is not a party to the contract. The contract is between the buyer and the seller and not the buyer and the bank. The bank can ask anything they want but in the end it all depends on the buyer and seller agreeing together and the bank releasing the lien.
This latest post seems to this blog seems to be a repeat of my Feb 1 post, but in discussing this with my broker, he said that I should advise the bank of a second higher offer and advise the bank to reject the first offer. That this is my obligation to my seller and the bank to give them the best offer. Another option is to advise both parties to present their best and highest. The bank has had the first offer since the end of January and we have not heard from any negotiator yet. Just wondering...
The short sale addendum to the purchase agreement says 'unless otherwise agreed in writing, Seller may continue to market property despite acceptance of buyers offer, and present to short sale lender any additional offers that are received on property.'
Jeanette, I don't care what the short sale addendum says. You need to look up tortious interference if you intend to submit the second contract because you can be sued every which way you turn. I would NEVER submit a second offer until I had a denial for the first in hand, and even then I MAY go back to the first buyer (if it was a matter of price) and allow them to up their offer.
You are trying to treat this sale different than a regular sale. DON'T. Your responsibility is to the seller only...not the lender. You walk a very risky line if you start submitting multiple offers because both the buyer AND THE SELLER can sue you if something goes wrong.
Thanks! I was asking my broker if this addendum was out of date and out of touch with the current short sale process. He said this clause was to protect me! This is why I like to bring these arguments to this group to assure that I always do the right thing for my clients. I don't think anyone else understands these issues like this group..
The bank issues addendums to protect THE BANK ... not the homeowner and NOT the agent. Please keep that in mind.
Smitty is correct. The seller can only sell to one person just like a regular sale. The bank is there to release the lien, if the first offer is not enough for them, they will not accept the sale, at that time the first buyer has the right to raise the offer and if they do not, the bank can then go to the back up offer.
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Are you a buyer or an agent? I'm confused. If you are backup, they need to exhaust the effort with the first buyer before they work on your offer.
i'm a buyer.........thank you ...exhausted means they try as many times as they can......i thought when they reject the first offer they go to the second..
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