It started simply enough, I needed to find some houses for a new buyer that can close quickly located in a couple of towns near my office. Luckily the buyer's wants are very specific so the search was narrowed to a few. Because I wanted to eliminate short sales, unless the sale had fallen apart due to a buyer walking away, I thought it would be easy.
Calling the 2 listings that claimed that they needed a new buyer because their short sale was approved, but the original deal fell apart, I found out that things are not what they look like.
The first agent informed me that yes, they were looking for another offer. As we spoke I found out that the agent actually had submitted multiple offers to the bank and that the bank was going to decide which was the best offer??? OK, now having worked short sales for a bit I know how hard it is for a bank to make a decision on 1 signed offer...months. Now why would anyone send in multiple offers so that they can take even more time???? Do you wonder why the buyers don't stay?
Now in my neck of the woods, the seller still needs to sign the offer before we send it to the bank for 3rd party approval. The seller still owns the property until it is sold at the sheriff's sale. Now perhaps your area is different. But here, in Chicagoland, in my MLS when the seller signs that offer we place it as CONTINGENT - with the contingency being 3rd party approval. Now I understand why some Realtors may not want to do that ....they want to continue getting back up offers. I will accept back up offers as long as all parties know that is the case.
I am currently dealing with a short sale that fell apart. I have reactivated the listing and indicated that the bank has approved at the current new list price and that I am looking for a replacement buyer, many other agents in the same boat are doing that. How the bank will deal with the replacement offer I really don't know. If its for the same amount of money I am hoping that they will reapprove and keep the closing date from the original offer and we can make everyone happy!
I don't think its doing anyone any favors by letting the bank take multiple offers on a short sale. I always thought that if multiple offers come in to a listing that the realtor and seller should look at the merits of all offers and submit the best one to the bank for consideration.
I can see if the bank wants to play that game once the property is an REO but why should we as professionals make it even more difficult to complete a short sale by submitting multiple offers that are not even signed by the seller - which in my mind is not an actual "offer". A buyer has an even easier time getting out of the contract because in actuality there is no contract. At least in my mind, or am I totally off track here??
I would not put any buyer of mine into this type of situation especially with all the available inventory out there. If I need enlightment on this issue, please let me know.
Short sales are difficult enough without adding more issues to them....let's keep it simple, please!