If i have a signed agrement and i am in first place with my offer is it legal for the realtor/homeowner to accept another offer and send it to the bank and then try to get me to raise my offer so i don't lose the house. Because i thought if you have a signed agrement and in first place they can not sign another agrement unless they go is 2nd place, or is it different in a short sale. Because i fell like i'm getting dick around.
It doesn't matter what the homeowner signs off on, the lender is the one taking a loss, it's their decision.
I don't know as far as the legality of anything, obviously, that's for a lawyer to answer.
This is why you submit your own offers and don't rely on an agent. I don't know your fully story or why you're buying this house (primary residence or investment, flip etc...) but if you plan on doing this again, you make sure you deal with the lender directly, you submit your offer directly even if there is a silly agent involved. It's your money, don't let someone else be in control of your money
It doesn't matter what the homeowner signs off on, the lender is the one taking a loss, it's their decision.
I don't know as far as the legality of anything, obviously, that's for a lawyer to answer.
This is why you submit your own offers and don't rely on an agent. I don't know your fully story or why you're buying this house (primary residence or investment, flip etc...) but if you plan on doing this again, you make sure you deal with the lender directly, you submit your offer directly even if there is a silly agent involved. It's your money, don't let someone else be in control of your money
Thanks for the reply. I am buying the house as a primary residence and the house was already listed with a realtor so still my question the house is still technically the seller's house at which he is selling on a short sale, so i have an accepted offer sighned by the seller at x amount so legaly the bank accepts, declines, or counters. The realtor can't send in another offer even if it's higher until the bank accepts, declines, or counters my offer right or wrong.
Thanks for the reply. I am buying the house as a primary residence and the house was already listed with a realtor so still my question the house is still technically the seller's house at which he is selling on a short sale, so i have an accepted offer sighned by the seller at x amount so legaly the bank accepts, declines, or counters. The realtor can't send in another offer even if it's higher until the bank accepts, declines, or counters my offer right or wrong.
In a short sale, the lender has first right of refusal and the seller is in distress, so a higher offer or better terms are material to the success of the transaction. In your contract, you should have a short sale addendum which would effectively answer your question.
In the addendum it should state whether the seller can present subsequent offers to the lender. If it does not allow for it, then you will need to put your contract in escrow along with an earnest money deposit.
Simply having a contracted executed, in most states, without having a earnest money deposited, means you simply have intent. If you want to lock it in, I suggest you go into escrow if you have not already.
Have an offer accepted by the seller of a short sale means absolutely nothing. Yes, maybe it should. It does not. I will never again give earnest money on a short sale without bank acceptance. I have an EM tied up for a couple of months with a deal like this. Seller accepted, I gave an EM check, bank didn't approve. The bank eventually took it to auction.
Buying a short sale or REO for a personal property is a sure way to a broken heart. If you're really, really determined to own this specific house, make them an offer that's well above the price the bank is willing to accept. If they already have an approved short sale, someone knows this price. If the short sale hasn't yet been approved at SOME price, then you really don't have squat here. My best advice in that case is to go find 10 more similar houses and make offers on all of them.
Its entirely possible to get good deals on short sales and REOs. Its is very unlikely you can get a good deal on A SPECIFIC short sale or REO.
Thanks for the reply jon, My wife gave me thats my house and don't come home until its here's lol. So i think we offered well above what they would want here let me throw some numbers and let me know what you think asking price 189,000, the BPO came back at 180,000 and i offered 196,000. So to me that seem's like a resonable offer, it's going threw wamu/chase.
This article outlines the legality of such offers. HOWEVER, anyone can do anything -- just b/c something should be done a certain way doesn't mean that the parties involved will do it correctly.
1) Most Realtors do not negotiate short sales, they simply submit offers.
2) The sellers Realtor is obligated to do the best they can for the seller. So bringing all offers to the Lender is what they should do.
3) The Seller is at the mercy of the Lender. The Lender will dictate the numbers. Unless someone is negotiating the numbers.
4) All legal questions shoud always be answered by an attorney you trust.
yep i agree but i thought if you have a legally signed contract with the seller that all other offer's that come in the seller can accept but have to wait in like a 2nd place until the first offer fall's through or gets declined from the bank or they accept the offer. There for i have a legally signed adendum from the seller that accepts my offer so if the bank want's more money the seller has to come up with the difference because that's not my problem it's his he already accepted my offer at a specifiec price.
Your case would be correct if this were a typical transaction. But, you are dealing with a short sale. The agent that is working for the seller is going to present all offers to the Lender.
Another factor- your statement that if the Lender wants more money, the seller has to pay this. This will definately cause signs of caution for the Lender.
One last item: It is best to not get emotionally tied to a short sale. If you do not perform them on a regular basis, they can break your spirits.
ok let me word it like this they put the house on the market at 189,000 on approval of a short sale. So i offered 196,000 and have a signed addendum, the bank has not approved the short sale yet so technically shouldn't it still be treated as a traditional sale until we hear back from the bank. Thanks for your helpful imput.
Well, at least you're in the ballpark. Its really comes down to whether or not the bank approved that listing price or it the bank is only hearing about this once the seller has a contract. If the former, the I would think they would accept your offer, unless there are better ones on the table. If the latter, then who knows. The bank may have a completely different number.
Now this is an interesting piece of data. Does the seller have cash to do this? Does the seller have assets? If they can come up with some cash, can they come up with enough to make the bank whole? Because if they can, or if they have good income, this is a whole different ball game. Having a house that's worth less than the loan balance is only one piece of getting a short sale done. If the seller has money or income, and doesn't have some hardship, the lender is going to expect to be made whole. If that's the case, the lender may be willing to take the property to foreclosure, and pursue a judgment against the seller. That's exactly what happened in the deal I mentioned.
Actually they do have hardship i think they have the irs on there *** about some back taxis on his business, and they have not made a house payment in like 9 months so i would say no money no assets. But he signed a legaly binding contract at 196,000 so we are waiting on the bank but my question is can they keep sending in other offer's to the bank when he already signed my offer.
Will thanks james, but i still believe the house is still the owners house and not the banks so i'm not makeing a deal with the BANK, i am making a deal with the home owner who still ownes the house and signed a contract i could be wrong but that's the anwsers that i am looking for. I appreciate your answers and am not trying to argue with anybody i really don't know the right answers but it just seams like everybody has a different opinion on these short sale and there is no set way to do them RIGHT. LOL
The property owner does in fact still own the property. But the property owner is asking the Lender with whom they owe money, to accept less money than they owe. So the Lender has the rights to accept the offer, counter the offer, or reject the offer.
The property owner's Realtor has the responsibility to sell the property in question. The seller wants to perform a short sale. So the Realtor is submitting the offers on the property to the Lender in hopes they accept an offer.
As for how to perform short sales. Well yes there are several ways. Realtors look at short sales totally different than investors. The outcome is the same no matter who does the short sale. The Lenders state what they want for them to consider a short sale. Once the paperwork is submitted they get to choose what they want.
Department of Realestate sites have this information for you state. I know Arizona Department has this information posted on their site..
A Contract is a Contract, an earnest deposit should be accepted on a Short Sale.
Lenders part - is to only agree to disagree to take that payoff thats it....
Most Short Sale Buyers are misinformed, most short sale buyers do not have the patience to wait for the Lenders acceptance of the payoff.
Sad part is the time involved to process a short sale acceptance, although recently banks seem to be working harder complete short sales in a more timely manner. Ive closed several within a four week time frame, somethings changing..for the better
Once a Short Sale has an offer on it it is listed as pending continue to show.
There is a Real Estate Form called Multiple offers for everyone to sign.
There is a Short Sale Addendum as well that explains the process.
Again this is a legal binding Contract, between the seller and the buyer. Do you see the banks signature on the CONTRACT?? There is a REASON you want a TRAINED Knowledgable Realestate Agent to guide you properly through this process. You should interview realtors to see how many short sales they have processed and their knowledge base.
Look at Foreclosure bank acceptance letters what a joke, banks are making statements to the effect that even though they accept the buyers offer they have a right to accept other offers right up to the day of close....
Lenders responsibility is to only agree or disagree to take the payoff...
Be happy when lenders they do agree, Short Sales is a great way to obtain properties at exceptional price, you put your monies in a 401K and over time you hope you gain, so why not invest your monies in Short Sales ...
I would like to see lenders change there short sale process and guide borrowers who do not qualify for loan modifications into a short sale, this would slow down the foreclosure glut.....
Lenders should help create jobs for realestate agents by creating Trained Short Sale Agents who are assigned to borrowers to help market and sell their homes, thus helping the borrow from Foreclosure, in turn saving the Lenders thousand in Foreclosure FEES
Ok thanks James- so if i really want the property and another offer comes in a little higher the best thing to do is send in another offer a little higher, but see there trying to play mind james like another offer came in and i can't tell you so what's your most and best offer it's like the realtor's trying to play auctioneer here. So he has that right and my contract means nothing even with a em check with my offer.
Without being in control of the deal, you have to trust the sellers Realtor. Hopefully they are not telling you they have other higher offers when they don't.
As for when you find out that another higher offer has been placed, what to do. I do not purchase my short sales from Realtors because I like to control the deal. You stated that you have a Realtor involved. Have that Realtor find out what the offer was. See what they say.
This is why I stated that it is not good to get emotionally attached to a property that is a short sale that you are not in control of. Sorry!
The seller would be in control if they were willing to pony up enough cash to make the lender whole. Then their signature would mean something. The lender always has the option of taking the property to the sheriff's sale. You should figure out the process for that, and find out what's going on with this property. There's a possibility you could buy at the sale, if the short sale falls apart. Or, you could buy from the bank if it takes possession after the sale.
yep I agree not to get emotionally attached to the property but there's a but the wife is emotionally attached so therefore i am trying to fight for the house so i have some where to sleep LOL. I do have a realtor working for me but she says it's unethical to share other offer's which doesn't make any since to me. Hey again thanks for your time james and everybody else.
yep jon the house has been on the sheriff sale for about a month and a half now and they keep cancelling at the last minut. So i have looked at that the only problem is somebody was talking and another offer came in at 1 thousand over my offer 2 month after mine was submited so i think i have some dirty realtors.
The last minute cancellations are common here, too. It may well not get cancelled one of these days, though, when the bank gets tired of the monkey business.
The listing agent may well not reveal any info. But its certainly worth trying to find out where you stand. In my case, though, the listing agent insisted we still had a deal right up to the day it went to auction.
Ok check this out just got the ultimatum home owner/Realtor said tommarow at 10 A.M they want final and best offer's submitted. So after 10 they will not accept anymore offers >LOL OK lets do this because there's only one other couple with an offer in and i think they will not put another offer in so my offer of 196,000 just went to 198,000 I can live with that WISH ME LUCK LOL. So tomarrow afternoon when i find out i will let you all know what happen.