Here on the Gulf Coast of Alabama we mostly deal with investment and 2nd home properties. In the past when the markets were stable or going through the roof we have never had to deal with short sales of foreclosures. When a market changes as Realtors all across the country well know, it is a time for new knowledge of how to handle new challenging situations. I am finding this to be true with short sales.
In my opinion, and I am certainly not an attorney..........but....I believe that if a "seller" "accepts" an offer "contingent on lender approval" that you have an accepted offer until something happens that may cause it to fall through. It is a contingency just like a mortgage contingency or a walk thru contingency. Now I realize it is much more complicated and time consuming than that. I showed a property last week and my buyer wanted to make an offer only to find out that there was another offer out there and the Realtor said "they will present all offers to the bank". Now if a seller has already accepted an offer are not all other offers only "back up" offers until the first one is either pushed through or denied??? The bank does not own the property, it is still owned by the seller and the seller has accepted the offer. Sure the seller should be presented with all offers. Should this property not be listed as "under contract". It is kind of mis leading to go show a property and get ready to write an offer only to find that there is another offer already in the short sale process.
This has happened to me one other time. With that process we were the accepted offer and a higher offer came in and we weren't even offered opportunity of "highest and best" just "hey we have a better offer now and seller is going with that one"........................... If your seller accepts a regular offer and then gets a higher one (not a short sale) does he have the right to back out and take the higher offer?? I don't think so.
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