Your opinion please!

If I am not mistaken, in a short sale the Bank/Mortgage company holding the note has the final say on all contracts. An offer can come in and be accepted by the Seller, but still has to be approved by the Bank which can take over 60 days. During this time if any other offer comes in it too has to be presented to the Bank.

So what do I say your friend should do, she should send her offer for $235,000 to the bank and let them decide which one they take. Either way she gets paid since the Seller owes her a fee.

Thats exactly what she should do Christopher.  If her offer also has a pre-approval letter, be sure to add it. 

But then laugh all the way to the bank.

If your friend is the listing agent all offers should come thru her. She has a contract with the seller to represent them, market the property and receive all offers. The seller should have told the investment company to either use an agent of their choosing or to go thru the listing agent.

Janice Benson

Yes, send in the offer for the 235,000, it is up to the bank on which one they want and I am sure they are going to want more money.  But make it as painless as possible for the bank, send a pre-qual letter with your offer so they can see they are serious and a sure thing..good luck to your friend.

I agree with Janice, however if the offer from the investor is that much lower, do you really think they will take that offer if the larger offer is qualified and can close whenever the bank wants them to.  Maybe she also needs to remind the seller that all contracts are supposed to come through her, and advise the bank that the seller is trying to negotiate other deals.  That may help more than anything.

Hey, Pam. I cant think that the first contract is final. I would, like everyone else, submit the second contract for consideration. I wish her all the best, Jim

Absolutely, your friend should send the bonafide offer she has to the bank, providing her listing references the short sale, making it subject to bank approval. She has the listing agreement with the seller, so the seller cannot sell the home without paying her a commission. As for the investor / company -- I'd also look them up to see if they are a participating member of MLS. MLS in your area most likely has regulations about making offers through the listing agent, unless the listing agreement says otherwise. If that's the case, I'd report the investment company to MLS.

I'd also let the bank know there is a possiblity that a much lower offer is floating around somewhere, but that it's never been received.

Above information and advice all sounds about right.  Here in So Cal we have a short sale addendum, which makes it pretty clear that the offer is contingent upon seller's receipt of written concent of short sale lneders, and that the short sale lender is not obligated to accept a short sale.

Good luck- keep us informed of what happens!

Hi Pam, one of the things that might be going on is the investment company might have agreed to pay the seller some money on the side after the closing. There are a lot of companies out there that are trying to buy pre-foreclosed houses and they want them off the market. They tie the house up and want to market the house for resale to do a simutaneous closing. The only problem is if they don't find a buyer or the bank doesn't accept their offer they walk away scott free. And the seller is closer to actual foreclosure. They then will wait for the sheriff's sale and pick the house up there.

Tell your friend to leave the house on the market and to submit the other offer to the bank. Have her get a copy of the offer the investment group is making. I'll bet that some of what I mentioned above is in the offer. That is way too risky for someone facing foreclosure.

Sincerely,

Bill