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It might be wise. The seller is wanting to get out from under the debt, and the bank wants as much $$ as it can get, so how could introducing the additional offer/buyer impact that negatively, especially if the backup contract price is higher than the original.
Remember I said that the bank had already rejected the first contract and the initial buyer had already rejected the bank's counter. If the initial buyer knows that there is another buyer in the wings, s/he may take the counter offer more quickly than if s/he thinks further negotiation is possible.
Each situation is probably different. Ultimately the question should turn on who the LA and negotiator represent. It certainly isn't the buyer, whether the initial or backup.
Ah, the beauty of semantics. For many the two are the same thing.
But with short sales, perhaps not. I think a listing agent would need to be very careful on having a seller accept a second offer without some very serious caveats explaining exactly how and when the second offer could come into play.\
Most training that I have seen strongly recommend that the seller NEVER sign a second offer. So the "back up" is not fully executed. Merely first in line should the first offer not come together or is withdrawn. As a listing agent I would be looking to the bank(s) to see if they had some direction/policies. The problem with short sales is that they are not normally set up for more than one offer on the banking end of things. And add to that the danger of having to start the process all over again with a second offer.
At least REO departments have their act together. Well, most of the time.
Isn't this fun :>) There is a good reason to have a skilled real estate attorney on your team. Multiple offers can be a business and legal minefield for the agents involved. I think too many agents charge right in.
BOOOOMMMMM!!!!!!!
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