short sale Help.!!!!!!

We are putting a bid on a house that is in short sale. Simone else is interested. Found out what we are putting in. Now the other people put in higher. We are matching their price. Found out how much they are putting down. We are putting down more. Was told by their real estate agent that they are presenting both offers to the home owner and they pick. Then it goes to the bank. How does the homeowner get to choose? He is not getting any money from this sale. Is this right? We want this house so bad.

Re: short sale Help.!!!!!!

if both offers are for the same price

I would pick the people using the mortgage company I think is easier to work with

or if 1 is an FHA loan and 1 is a conventional- I would advise my buyers to go with the conventional

(higher down payment on the conventional and should be easier to get done once the short sale is approved)

Re: short sale Help.!!!!!!

Just curious how they found out details of your offer and vice versa?

Re: short sale Help.!!!!!!

Re: short sale Help.!!!!!!

Legally, all offers are supposed to be presented to the bank. I mean, even if one offer is accepted but pending bank approval, and 3 months later another offer comes in, the listing agent is supposed to let the bank know there is another offer.

But practically speaking, some banks don't want to hear all offers, especially if they are far down the road with one. And you don't necessarily want to tank one deal by throwing another offer in the mix.

But imo, the listing agent and the homeowner should not be exercising discretion over what info the bank gets. If I were the listing agent, I would tell the bank -- here's the situation -- there's more than one offer, how do you want to handle it? And I would put that in writing. If the bank says "we only want to see the highest," then the listing agent met their obligation. The bank may say, submit both and we'll consider both.

But I think, from a realtor's perspective, it's a dangerous game to omit any info to the bank. The listing agent should make the homeowner see that the only thing that matters is what the bank wants - - it has all the control -- so it's in the seller's best interest to do what the bank wants, not what they think is best, if they in fact want to sell.

But in general, that's why short sales -- the way they are currently done -- can be stressful for the buyer. There is no way to ensure that the listing agent knows what they are supposed to do and will actually do it! As a buyer, you (and your realtor) have a lot less control over the situation.

Good luck!

Re: short sale Help.!!!!!!

I do a lot of short sales- and I disgaree with letting the bank pick the best offer

I also wouldn't let the home owner pick either

it's my job to present the strongest CONTRACT to the bank- the $10 an hour processor at the bank doesn't know enough to say which offer is stronger-

banks don't consider offers on short sales- only contracts- I am not going to have my attorney send mutliple contracts- I haven't met one in NY that would

I also don't continue to show and present offers on houses in contract- once we have a buyer waiting to wait on a property it's in my sellers best interest to get the deal closed and not complicate it

this is the way CDPEs are taught to handle short sales

We get them closed in less then 120 days and close more short sales then any other "short sale" designation for a reason

playing these games only hurts the market and people who need to sell there home via short sale

Re: short sale Help.!!!!!!

Thank you for your responses...this is so stressful. We should have had this done weeks ago. It was the fault of the other realtor (the one selling the house) We were ready to put the bid in, but she waited and I think must have told the other buys what we were going to bid, so they came in higher, and then we matched it, but are putting more down. It sounded like she was waiting for a higher offer so she can make out with more $$$.
So mad, because it cost us more if we get this house...please keep your fingers crossed. I will be so upset if we lose it

Re: short sale Help.!!!!!!

Posted by Diane

Thank you for your responses...this is so stressful. We should have had this done weeks ago. It was the fault of the other realtor (the one selling the house) We were ready to put the bid in, but she waited and I think must have told the other buys what we were going to bid, so they came in higher, and then we matched it, but are putting more down. It sounded like she was waiting for a higher offer so she can make out with more $$$.
So mad, because it cost us more if we get this house...please keep your fingers crossed. I will be so upset if we lose it