BiggerPockets

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.

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.

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.

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.

http://willjohnmakeit.com/agents-have-no-duty-to-submit-short-sale-offers-%E2%80%93-surprised/

Frank,

Here are a few things to think about:

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.

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.

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.

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.

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.

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.

Frank,

I think you are wanting us to give you the answer that you are looking for- that they can not sent in any other offers.

But unfortunately that is not the case. Without an acceptance letter from the Lender, the Realtor will continue to send in all offers.

The only way around this, to negotiate the deal yourself, or at least be in control of the deal.

Sorry,

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.

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.