Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Do You Tell The Short Sale Lender "Buyer Walked"?
 
Karla Leahy started an interesting discussion on www.ShortSaleSuperstars.com.  She asked "Do you inform the short sale lender when you no longer have an offer?"
From what I’ve seen the thought process behind not divulging the buyer walked is:
1. The lender will complete an appraisal or BPO that will speed up the next approval
2. The seller’s pre-qualification may be completed and ready for the next attempt
3.  With some lenders, you can sneak in a substitute buyer
Bottom line, it “saves time” for the next buyer, the one you hope closes.
BUT--  IS IT RIGHT TO NOT DISCLOSE THE BUYER WALKED?  Why should the short sale system be clogged because you are trying to speed up your next offer?  Is it right to allow the lender to continue to work on an approval when there is no longer a contract? Sometimes there is another twist on trying to speed up an approval.  “Fake” or “starter” offers are sent in to the lenders to get an appraisal ordered, when the “buyer” has no intention of closing.  The “buyer” might even be the real estate agent.
Some of the lenders have a few hundred thousand offers in process. HOW MANY ARE LEGITIMATE OFFERS?  The “real” buyers (and the ... more

__________________________________________________
Are you on The Rain? Grow Your Network!