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When buying a home that is a short sale, pre-approved, is it illegal to place an offer on two homes at the same time? I can't find anything in the contract language that suggests this.
The homes have been reviewed by the bank, but neither is fully approved. The lender gave the go ahead to sell the homes, so offers are considered, but the selling agent said it will take up to 30 days to get a final answer. So based on this 30 day waiting period and the chance my accepted offer might be shot down, I'm thinking to move forward on a second offer?
The inspection gives me a way out, if both offers are accepted. Both homes are "as is" no minimum on repairs. But am I overlooking anything here?
In my area, there is a specific Short Sale Addendum that basically says that the buyer can withdraw their offer at any time before receiving bank approval. Using a form like that, unless both offers got accepted on the same day, you would have an easy out.
You will want to check on the legalities of using an inspection as an out on an as-is. Make sure it is worded such that you actually do really and truly have an out for that.
Either way, nothing about it is illegal. Some people buy lots of houses. However, if you are only intending to buy one house, there might be ethical (as opposed to legal) issues. Personally, I would let my lender and both sellers I am making offers to know what I was doing. Others may disagree with that from a negotiating standpoint, but to me, it is the right thing to do.
you may put in as many offers of homes as you can purchase!!! When you make a contractual offer, and the seller accepts your offer (you have accepted their contingency of needing to get approval from the bank), but you are in a contract to purchase. If that approval from the bank comes back positive, YOU ARE OBLIGATED TO PURCHASE THE HOME!! Can you purchase both of them? Now, if you want to put language in the contract that you can walk at anytime for any reason, that is your business, but you may not get too many accepted agreements either (depending on where you live and your price point.)
you may put in as many offers of homes as you can purchase!!! When you make a contractual offer, and the seller accepts your offer (you have accepted their contingency of needing to get approval from the bank), but you are in a contract to purchase. If that approval from the bank comes back positive, YOU ARE OBLIGATED TO PURCHASE THE HOME!! Can you purchase both of them? Now, if you want to put language in the contract that you can walk at anytime for any reason, that is your business, but you may not get too many accepted agreements either (depending on where you live and your price point.)
shelly
Well, we also use a short sale addendum here that gives the buyer the right to cancel for any reason prior to bank acceptance. We still get plenty of accepted agreements. As you indicated, perhaps not the norm where you are.
yep, not the norm here. But hey, AZ and CA and FL are the leaders in Short sales and REO's, so we may catch up to you!! : )
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