Hi Folks. Here's an email I received yesterday from one our members at www.ShortSaleSuperStars.com. It shows the common misunderstanding that lenders handle short sales like they do REOs (foreclosures).
Hi Broker Bryant,
I read some of your comments on Short Sales Superstar.
I am a potential buyer. We have bought several properties in the past but are very inexperienced with short sales. We have been looking for a home for a long time and have not been able to find what we are looking for until now, except that the property is a short sale and an offer has already been submitted to the lender. So, instead of just walking away, I am hoping to learn a little more about how short sales work in the hope that we may have a chance at purchasing this house if we approach it in the right way.
The seller's agent has submitted an offer to the lender but the lender has not accepted it yet (I have a feeling that the seller agent is not very experienced with short sales either and just sent it to a department and has not had much communication with the lender). We are strong buyers with 60% down, a three figure salary, and pre-approved loan, but I don't know if this is even considered in a short sale. We want to make a competing offer and would have done so via the seller's agent, but the seller's agent will not submit our offer to the bank because she already has an offer she submitted and says it may sit at someone's desk for months before she hears back from them. The lender still has not accepted/approved this offer, but the seller agent will only accept our offer as a backup offer and will not submit it to the lender unless the first offer made is declined. She tells me that you cannot submit two offers to a lender. Is this so?
Prior to this conversation with the seller's agent it was my understanding that until the offer is accepted by the lender, multiple offers can be made and presented to the lender. I would imagine that lenders actually like and prefer receiving competing offers, is this not so? If so, I am wondering why this agent will not submit our full price offer to the lender. Is she right to do this? Is there anything we can do about it?
The agent has more than likely submitted a contract to the lender. NOT an offer. In a short sale the lender is being asked to accept less (short) on the amount owed. They are not deciding on whether or not to accept an offer. The lender is not a party to the contract. That's between the buyer and the seller.
At this time, you can submit an offer to the seller, through their agent, and see if you can negotiate a deal and have your contract accepted as a back up. This way if something should happen to the first deal your contract would move up to the first position and then be submitted to the lender.
Submitting more than one offer or contract to the lender creates confusion. Lenders want ONE fully signed and accepted contract to work with. You have to remember they do not own the property. It's a different situation than a REO (foreclosure). END
So remember, a Short Sale contract is still a contract. We submit contracts to the lenders NOT offers. Got it?
Are you facing foreclosure in Florida?
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.
Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved