Originally Created On:
December 8th, 2010 at 9:58 am
I seem to get this question at least once a month from Realtors. Remember the homeowner of the property is the seller, not the bank. All offers must be presented to the seller, who along with their real estate agent or attorney, should review those offers and decide which one they will accept. They can only accept one offer. Only that executed contract should be sent to the lender.
Now the highest price might not necessarily be the best offer. A cash offer at a lower price might be a better offer than a FHA buyer with a small down payment, who needs to close in 60 days. A buyer who can wait until the short sale is completed is very attractive. Encourage agents to submit back up offers.
I would be very leery of working with a listing agent who tells you that they will be collecting offers and submitting all of them to the bank. This shows that the agent does not know how to handle a short sale. The bank does not want to be in a position of reviewing multiple offers either. Mitigators can be working on hundreds of short sale files simultaneously. Multiple offers might confuse or lead them to over look your file since they are so overwhelmed. They have a hard time holding onto the documents for one offer let alone multiple.
The lender can approve the short sale or counter with a new price and terms. The buyer may agree to the bank’s price and terms, counter the bank’s counter, or withdraw the offer. If that occurs, you can then review the back up offers.