Thursday, September 24, 2009
Best Short Sale Process is the one Everybody Agrees on
Dear Sue,
I want to buy a short sale that has an offer on it pending the lenders approval. I asked my agent to write an offer for substantially more than the asking price in an effort to beat out the existing offer.
My agent explained that my offer would be in a “back-up” position since there was already an offer. The agent who has the property listed, said she wouldn’t give my offer to the lender until the lender responded to the first offer.
That doesn’t seem right to me. I thought that all offers had to be submitted to the sellers. Should I get legal advice? I am tempted to submit my offer directly to the bank! Please advise.
Mad Mark
Dear Mark,
The short sale process can be very confusing. There is no uniform short sale system in place at this time. The best process is the one that the seller’s agent, seller and lender agree on.
Keep in mind that properties listed as “short sales” belong to homeowners that are selling their homes subject to their lenders accepting a short pay off. In other words the offers are being submitted to the sellers (home owners). The lenders are not the owners. The lenders approval of a “short pay-off” is merely a contingency or condition of an offer. The condition for a short pay off is necessary because the lenders or investors must agree to take less than the homeowner owes them.
Another way of looking at it; an offer is written subject to the lenders approval for a loan to purchase. Who is the owner? Not the lender.
There are exceptions. A listing agent, seller and lender can agree right up front that the first buyer in the short sale process has the right to meet or beat any subsequent offers. If he/she is unwilling or can’t meet the price, the subsequent offer is put in first position.
Knowing the short sale agreement “up front” can assist you in your negotiations and be a matter of good home dollars and sense.
For more Home $$s and Sense articles, up to date real estate news, listings and local information visit:
HomeTown Realtors
I want to buy a short sale that has an offer on it pending the lenders approval. I asked my agent to write an offer for substantially more than the asking price in an effort to beat out the existing offer.
My agent explained that my offer would be in a “back-up” position since there was already an offer. The agent who has the property listed, said she wouldn’t give my offer to the lender until the lender responded to the first offer.
That doesn’t seem right to me. I thought that all offers had to be submitted to the sellers. Should I get legal advice? I am tempted to submit my offer directly to the bank! Please advise.
Mad Mark
Dear Mark,
The short sale process can be very confusing. There is no uniform short sale system in place at this time. The best process is the one that the seller’s agent, seller and lender agree on.
Keep in mind that properties listed as “short sales” belong to homeowners that are selling their homes subject to their lenders accepting a short pay off. In other words the offers are being submitted to the sellers (home owners). The lenders are not the owners. The lenders approval of a “short pay-off” is merely a contingency or condition of an offer. The condition for a short pay off is necessary because the lenders or investors must agree to take less than the homeowner owes them.
Another way of looking at it; an offer is written subject to the lenders approval for a loan to purchase. Who is the owner? Not the lender.
There are exceptions. A listing agent, seller and lender can agree right up front that the first buyer in the short sale process has the right to meet or beat any subsequent offers. If he/she is unwilling or can’t meet the price, the subsequent offer is put in first position.
Knowing the short sale agreement “up front” can assist you in your negotiations and be a matter of good home dollars and sense.
For more Home $$s and Sense articles, up to date real estate news, listings and local information visit:
HomeTown Realtors
# posted by Sue Thompson @ 8:49 AM 
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