Handling  Short Sale Offers - Two Schools of Thought

You can certainly learn more at the office than you can working from your home.  Just sharing this weekends events today got us into a bit of a discussion on what is the best way, and what is the right way for a listing agent to handle offers on a short sale (pre-foreclosure).  

For the public that may be reading this, a short sale is a pre-foreclosed property.  The owner or somebody on their behalf (their agent or a loss mitigation specialist) has contacted their lender to establish the owners are in hardship and are unlikely to sell the house for enough to cover the balance of the mortgage they owe.

Until this morning I was unaware that there are two approaches for the listing agent to handle the offers.

1) Offers are taken and accepted by the seller with the understanding (as specified in the MLS printout) that all offers are subject to bank approval.  As offers come in, some or are all can be accepted by the seller (subject to bank approval) and submitted to the mortgage holder for their final approval.  

 

 or

2) Offers are taken by the seller and after ONE is accepted it is submitted to the mortgage holder for their decision.  While waiting for the bank to decide the seller may continue to market the property and can still receive offers which may be held in a back-up position.   The bank makes a decision to accept or reject the offer the sellers submitted. 

How is done in your state, county, town?   

With which way do you tend to agree?

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Mike Nastri  Keller Williams Realty
9175 Carothers Pkwy  Franklin, TN 37067
615.294.3912 MNastri@KW.com
 www.MikeNastri.com