Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Ok! We've been down this road before and I decided to turn to you fine folks for some input. We put an offer in on a short sale and after almost 3 weeks the sellers signed it and a copy of the executed contract was sent to us.
A) The contract where the sellers signed it was not dated. Meaning the date was left blank... does that mean anything?
B) The property remained an "active" listing for about 2 weeks after the contract was signed and sent to the next level. At the same time that the listing was changed from "active" to "backup offers" the price was dropped... is this a common practice? Anything to this?
C) We have been told (several times) that we are in the "first position" and that we are the only ones they are working with and that they do not proceed to the next offer (if there is one) until they have "exhausted" us as a buyer. I've read that this is often the case and this is how it "should" be done... but an extra set of eyes is always good.
A) Could have been on oversight, I would not read anything into it
B) Not unusual - depends on rules of your local MLS; Was your offer lower than that initially listed?
C) Yes, this is typically how it should be done
A) Thank you.
B) Unlike previous properties we approached, with this one we decided to let the agent take the reins. Our agent is an agent that works in the same office as the listing agent. The listing agent, my agent, and myself all agreed that the listing price was off base with respect to comps. My agent and the listing agent agreed on a price and I agreed with it as well. We all feel that upon BPO and appraisal, this is the number (or near it) is where the property will come in. The amount recommended was 15% less than the amount that it was listed for after it went from "Active" to "Backup Offers"...
C) Thank you again.
I recently had a transaction close that was exactly like this. I represented the buyer and the seller didn't date the contract. I kept reminding them to. They finally did toward the end of it all when the buyers lender asked for it. If nothing else it can be done at the closing table if you bring it to the title officers attention. I would be surprised if a deal fell through because of that.
With short sales, it's always a great idea to have a backup in case the buyer cancels before the lender approves. It happens all the time, and it's now possible to slide in the backup offer without slowing down the process. So the price reduction is probably a way to get one or two good backup offers into their hands while proceeding with your offer.
I've sot a few new questions about the short sale that I'm trying to buy. We recently learned that the seller is being very difficult and has not provided some of the documentation that bank is requesting. The seller's attorney has basically told the seller that if they don't comply he is going to drop them and the property will go into foreclosure.
We had a similar situation when it came time for the sellers to sign the contract. They kept dragging their feet -- and then finally signed when the attorney threatened to drop them.
Here are my questions:
1) How common is this and where does it usually go? Do most people pull this sort of stall and then ultimately sign... is it really that much better for them to short sale it than it is to foreclose?
2) MY BIGGEST CONCERN. To be totally upfront and honest. I have a hard time trusting any real estate agent -- I've gotten VERY screwed before. The buyer's agent (our agent) is in the same office as the seller's agent (I contacted the seller's agent to do a dual-deal, but was handed to this agent...) she assures me that I am in the first position and that the bank will deal with me FIRST.
To be blunt: How the heck do I know that during that 1 month delay between the contract being signed and the listing status changing (from available to "backup offers") that another offer wasn't made and I'm not really in the first spot --and all this talk about the seller stalling, etc. is just that - talk? Sorry to sound paranoid, but I've been down this road before.
--
Any light you can shed on this would be a major help!
C) We have been told (several times) that we are in the "first position" and that we are the only ones they are working with and that they do not proceed to the next offer (if there is one) until they have "exhausted" us as a buyer. I've read that this is often the case and this is how it "should" be done... but an extra set of eyes is always good.
I agree with rjrcm on A and B, but not completely on C. This really varies from bank to bank. Some banks only want to see one offer at a time, and will see it through to the end. Other banks want to know if you get a better offer and will bump the first person in a heartbeat if a better offer comes along. We actually have a form called a Short Sale Addendum, and if made part of the contract, it says (among other things)that no offer has priority over any other offer and you can be bumped if a better offer comes along. So I have to say it depends on the wording in your contract and what bank you are dealing with.
Quote:
Originally Posted by SammySammy
Here are my questions:
1) How common is this and where does it usually go? Do most people pull this sort of stall and then ultimately sign... is it really that much better for them to short sale it than it is to foreclose?
2) MY BIGGEST CONCERN. To be totally upfront and honest. I have a hard time trusting any real estate agent -- I've gotten VERY screwed before. The buyer's agent (our agent) is in the same office as the seller's agent (I contacted the seller's agent to do a dual-deal, but was handed to this agent...) she assures me that I am in the first position and that the bank will deal with me FIRST.
To be blunt: How the heck do I know that during that 1 month delay between the contract being signed and the listing status changing (from available to "backup offers") that another offer wasn't made and I'm not really in the first spot --and all this talk about the seller stalling, etc. is just that - talk? Sorry to sound paranoid, but I've been down this road before.
1. Not common, but also not unheard of. We had one last year that we had the listing on that the seller just drug their feet to the point that it did get foreclosed on. They refused to release their financial information and the bank wouldn't approve the short sale without it. Short sale is typcially less damaging than a foreclosure, but some just don't care.
2. Honestly, on a short sale, there isn't a real way to find out. Even if you were to call the bank, the odds are they will tell you something like this: It hasn't even been assigned to a negotiator yet, and when it is, they have 45 days to review it. Their system won't show who the buyer is. Until a negotiator is assigned, talking to the right specific person is very difficult, if not impossible.
If the sale is one that goes through equator.com, you could ask for a printout showing yours is the only current offer. I believe there is a screen that shows all offers on a property. Otherwise, you either trust your agent or you don't.
I agree with rjrcm on A and B, but not completely on C. This really varies from bank to bank. Some banks only want to see one offer at a time, and will see it through to the end. Other banks want to know if you get a better offer and will bump the first person in a heartbeat if a better offer comes along. ...
I also agree with you on C. However, the question was how it "should" be done . In reality, some banks may not follow this procedure, although the OP was told they would, so hopefully it's true in their case.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. In reality, some banks may not follow this procedure, although the OP was told they would, so hopefully it's true in their case.
