[kevinjanet]

We have found two condos in the Las Vegas area and have submitted offers. Both are short sales. There is no guarantee either will be approved by the lenders. We want to submit both offers simultaneously and see which is approved first. Is there a downside to doing this? We so not want to be liable for purchasing both properties, or lose our earnest money deposit for the one we do not purchase. FYI, this is a cash purchase. Any advice or suggestions? By the way, we need to sign the counteroffers from the sellers tomorrow, July 2.

Thanks!

Kevin and Janet

[olecapt]

Originally Posted by kevinjanet

We have found two condos in the Las Vegas area and have submitted offers. Both are short sales. There is no guarantee either will be approved by the lenders. We want to submit both offers simultaneously and see which is approved first. Is there a downside to doing this? We so not want to be liable for purchasing both properties, or lose our earnest money deposit for the one we do not purchase. FYI, this is a cash purchase. Any advice or suggestions? By the way, we need to sign the counteroffers from the sellers tomorrow, July 2.

Thanks!

Kevin and Janet

It would not be unusual to have 5 or 6 simultaneous short offers. Hell they do that on REOs too. It is straight forward to open escrow with little or no money. YOu need an agent who has done a couple but it is relatively staight forward and has little risk to your money.

[gtbguy]

Originally Posted by kevinjanet

We have found two condos in the Las Vegas area and have submitted offers. Both are short sales. There is no guarantee either will be approved by the lenders. We want to submit both offers simultaneously and see which is approved first. Is there a downside to doing this? We so not want to be liable for purchasing both properties, or lose our earnest money deposit for the one we do not purchase. FYI, this is a cash purchase. Any advice or suggestions? By the way, we need to sign the counteroffers from the sellers tomorrow, July 2.

Thanks!

Kevin and Janet

I have 7 offers in right now and still waiting to hear.

[RCCCB]

Originally Posted by kevinjanet

We have found two condos in the Las Vegas area and have submitted offers. Both are short sales. There is no guarantee either will be approved by the lenders. We want to submit both offers simultaneously and see which is approved first. Is there a downside to doing this? We so not want to be liable for purchasing both properties, or lose our earnest money deposit for the one we do not purchase. FYI, this is a cash purchase. Any advice or suggestions? By the way, we need to sign the counteroffers from the sellers tomorrow, July 2.

Thanks!

Kevin and Janet

You can bid on 20 as long as you have that many little checks to start the process.
Then if several go through at once you can choose what you want and I THINK you have 10 days to cancel other offers once they've accepted yours.

I'm sure somebody can correct me here on that.

If there are bunches of bids you want to eventually decline, you better beware of the timeliness of your backing out or there could be some big money consequences I think.

[toddr5]

Just make sure you have a 5 day due dilegence clause in each offer then accept or decline offers within that period and you will get your earnest money back.

[007 license to sell]

Originally Posted by kevinjanet

We have found two condos in the Las Vegas area and have submitted offers. Both are short sales. There is no guarantee either will be approved by the lenders. We want to submit both offers simultaneously and see which is approved first. Is there a downside to doing this? We so not want to be liable for purchasing both properties, or lose our earnest money deposit for the one we do not purchase. FYI, this is a cash purchase. Any advice or suggestions? By the way, we need to sign the counteroffers from the sellers tomorrow, July 2.

Thanks!

Kevin and Janet

HOUSE HUNTING TIP:
Even though you have already put in offers on short sales I wanted to pass along this information for anyone else thinking of doing a short sale to get and an idea of how they work.

Beware of sellers in short-sale situations who list their properties at below-market prices in order to entice buyers into making offers. Before getting serious, find out the amount of the loans that must be paid off to close the sale.

If the loan amounts total more than the sellers' asking price, then you will either need to pay more, or the seller's lenders will need to agree to accept less than they're owed.

That is, unless the sellers have savings to contribute to the sale.
Buyers who want to go ahead with a purchase that is subject to the lender's approval should be prepared for a longer-than-typical closing. Usually, the lender won't even take a short sale under consideration until the sellers have accepted an offer. It can then take three or four months before you'll know whether or not the lender will approve the sale.

THE CLOSING: Be sure to include a provision in the contract that allows you to withdraw at any time up until the lender approves the sale. This way you can get out of the contract without penalty if it looks like the transaction has little chance of closing. Also your realtor should make sure to watch for COE date that you may need to be doing extensions.

Good luck with your purchase there are some really great deals out there right now and they don't have to be short sale.

[gtbguy]

Originally Posted by 007 license to sell

THE CLOSING: Be sure to include a provision in the contract that allows you to withdraw at any time up until the lender approves the sale. This way you can get out of the contract without penalty if it looks like the transaction has little chance of closing. Also your realtor should make sure to watch for COE date that you may need to be doing extensions.

Good advice 007 I will also make sure of this.

[toddr5]

A clause that indicates you can pull the offer at any time prior to acceptance is not needed, that goes without being said. Since there is no consideration given by the seller your signature on the purchase contract is merely an offer to enter into a contract not a contract itself until acceptance by the seller. Since it is not a contract it can be withdrawn at any time for any reason or no reason at all. One of the elements of a contract for it to be enforceable is consideration on both sides (that is each side must be giving something up) since your purchase offer does not have consideration given by the seller prior to acceptance it is not a contract at that point. Your money should be refunded and Purchase offer voided at any time you choose.

[lasvegasexpert]

Now we have a short sale addendum that says nothing starts until we have a fully executed contract signed by the seller's lender(s). It allows you an exit strategy if you are lucky enough to get more than one offer accepted.

Of course, I would have my agent withdraw my other offers after I get one accepted. Its courteous and any offer can be withdrawn prior to the bank accepting it on a short sale.

[olecapt]

GLVAR has had a short sell addendum to the O&A that covers all this since the 2Q of last year.

I would expect any competent RE Agent to be using it or an equivalent.

Practically you don't really need it...but it is always nice to have it all written down if push comes to shove.

A client should never need to worry about this stuff.