Short sale - can we still take higher offers?

Sorry if I am duplicating my question from my response on my 1st post - but I was hoping for more input (thank you for the answers that have been given so far).
We have a contract that has been submitted to 1st & 2nd mortgage companies - we owe about $117k on 1st w/Countrywide and $30k with 2nd/HSBC. Our offer is $125k that has been submitted.
Another buyer wanted to offer $126k, and we have a possible 3rd offer yet to come in.
My realtor (a newbie) was told by another realtor that you cannot submit multiple offers - you have to see the 1st one through (something that was just “passed” in January)???
We just got our sign up today - and we want to keep trying for higher so that HSBC will get something, and not put the brakes on the whole deal.
I looked up our neighborhood and several homes are in pre-forclosure, also 2 bank owned and two going to auction shortly (only 120 houses in our community) - so I would imagine the banks at this point would want to get this sold.
Thank you all very much - I have learned alot from this forum! :biggrin

I would still keep taking offers until approval of the short sale.

We submit ALL offers we get during SS negotiations. We treat the lender like any other seller in a transaction. They have the right to know about all legitimate offers that fulfill their criteria. Lenders require that offers come with proof of funds or pre-qual letter. So, as long as the offer has that, we submit it.

Of course you also have to let all the buyers know about all new competing offers as well.

Thank you for the advice.
They are submitting the higher offer - but we did not sign anything? Don’t we have to sign, before submitted?:huh

Ok - another offer came in for $126.5k.
The first offer of $125k has “acceptance date” of 3/18/08 - which from what I have read, we won’t have an answer within a month (will be lucky to have it assigned within a month) :banghead - so, we signed on it…if nothing from the lenders by then, what happenes?
Also they put closing date of April 1st, another most likely not possible because of lenders.
The new offer expires 2/29 - so, we loose them right? Because they have no sined agreement from us - only one signed contract was submitted.
Two other offers were submitted (126k and the latest 126.5k) both unsigned.

Do we loose potential buyers while the clock runs out on this 1st offer/contract? :flush When would we find out - when 3/18 comes around and there is no decision yet from lenders?

Go ahead and sign both offers and send both thru. If you don’t get an answer by tomorrow, ask the buyers to sign an amendment extending the offer for another week or so. Tell them you are doing your best to reach the lender and they are unresponsive. Hopefully they won’t go away.

Ugh! That’s the most irritating thing about these lenders. I would call 5 times a day until you reach the loss mit or their supervisor. I would also refax (daily) the entire package with a cover page in big bold letters “Urgent - Have offers now - need answer today.” You sometimes have to go to extraordinary lengths to get their attention.

  1. Send the entire ss package via overnite (fedex or ups) requiring signature release
  2. Send the entire package via USPS return reciept requested
  3. Address package to president of the company.

You could include a note with some of this on it:

[i]Dear CEO,
Enclosed is an offer to purchase (property address) pending your approval of a short sale. My loan number is (000000).

Since the time of submission I have been constantly trying to work with your loss mitigation group. They have failed to return my calls, emails and other correspondences. Now I am in the horrible position of losing a potential buyer. I am not usually in the position of sending such a letter, I understand corporate structure and I would not have sent this if there was no other alternative.

The numbers are very simple:
BPO: $300,000
Sales Price: $350,000
(Insert your calculations here)

I am requesting assistance with this matter so that it can be resolved immediately. It is obvious from the numbers that it is in the bank’s best interest to close this escrow. Let me again apologize for going to such extreme lengths to get this message into the proper hands. It is not my intention to get anyone in trouble. It is simply to get this deal closed. Please help! I know that your company prides itself on customer service and I am just attempting to do the same for our mutual client.[/i]

We haven’t been assigned yet - they said 2-4 weeks for that.

Can’t we cancel the 1st contract as the seller?

What penalities are there, besides they get thier check back from the escrow company?
I really feel the latest offer is our best hope because they sound like an investor - they know closing won’t happen until approval etc. and I am afraid that the 1st buyer is maxed out at thier offer.

Now that the bank sees higher offers coming in, WHY would they accept the 1st lower offer (even if it’s only 1.5k lower)?

The realtor should sort all that out for you. You can’t just cancel the first offer, you have to reject it or counter the offer. Either way, you must tell the first offer that a second one offering more money has been submitted. They must be given the chance to counter offer. I really recommend you let a realtor handle it for you - especially if the buyer has a realtor representing them.

Also, no offer should be submitted unless you are sure they will close. This means each offer must come with a pre-approval letter from a lender or funds to close must be verified by escrow. Both buyers must sign a disclosure stating that they understand that their acceptance of their offer is contingent on your lender approving a short sale.

More offers coming in still - we can’t do anything till Country Wide assigns it and of course rejects the 1st offer.
Another showing today and another offer on it’s way. :banghead

I’m a licensed agent in Texas. I don’t know where you’re from, and each state may vary. I can only tell you how it’s done in Texas…

First, all offers that are in writing are required by law to be presented.

Second, each offer should contain a phrase that states something like this: “Subject to Seller’s Mortgage company approval”. That sentence tells everyone that your approval is needed, but the bank has final say.

As far as multiple offers, well, that depends. The way I handle it is simple. I notify everyone that we are now in a multiple offer situation and ask for them to present their highest and best offer. When those offers come in, I forward them on to the bank.

Being a Realtor, I hate to say this, but it is true. A short sale is not for a Rookie agent. Can they handle it? Maybe…Notice that answer. Let me say it again…MAYBE… This is something that is best handled by a pro…

But like always, this is just my opinion and I still don’t know what state your in…

Good Luck,
Ken Tate (a.k.a. Mr. Real Estate)

We are in Florida.
My sister in law has been working with her broker every step of the way - he has 13 years realty experience.
Just wish the 1st offer we accepted that was expalined better - re: closing costs, wanting a home warranty and exactly how much the mortgage companies would be offered net. We would nOT have signed that one - would have waited (since it had an acceptance date of 3/18) and our better offer would be the one submitted.
All offers are being faxed in, however they will probably be gone by the time the 1st gets rejected. Just wish we could “cancel” the 1st and sign off on the better offer - so buyers can opt out (and loose deposit) but sellers can’t?