Does GMAC want all the offers to be presented or 1 offer at a time? We have an agent that is telling that GMAC wants all offers signed and presented. If you can help me whith this information that would be great. I know that I currently work short sales through other lenders and they work with 1 at a time. Preferrable Highest, cleanest and best for them. Thanks for all of your help! Juanita Brooks
It is illegal for a seller to agree to sell the same property to multiple people at the same time, so NO, can't happen.
I've got one now. One at a time. They're not really bright people you're dealing with so they get confused!
The one I have they gave me the listing price. I have an offer at the listing price submitted. They jacked the asking by $8,000.00. I asked them to reject the counter at the asking price. Two weeks later I get an email "What's going on" on Equator. It dawned on them they were losing the deal so they agreed to the first offer. (Less than the counter)
The bank is the 3rd party to the ratified contract between the buyer and seller. THey are not a party to the contract.
Absolutely never ever send more than one contract no matter what they request. even though it doesn't seem like it, the seller is in control of this process and if GMAC inquires simply tell them it's the only contract you have. If you keep sending them contracts they will just keep waiting for a higher sales price and will never start the short sale approval process. Also if a seller accepts more than one contract, which buyer gets the property at closing? The bank is just a third party and really has no say so in the transaction other than their payoff amount. We as agents have become too complacent and often times allow them to dictate terms, it's time for us to do some pushing back.
Common sense dictates one contract, one buyer.
BUT, check out what OUR short sale addendum states:
(a) Rules of the NC Real Estate Commission require offers from other buyers received by the Seller's Agent to be presented to the Seller. The NC Real Estate Commission also requires the Seller's Agent to inform Lienholders of all offers and contracts of sale on the Property received after a request for a Short Sale has been submitted to any Lienholder.
(c) Offers from other buyers may be accepted by the Seller and become sales contracts ("Additional Sales Contract") Seller or Lienholders may elect to substitute any Existing or Additional Sales Contract for approval by Lienholders and withdraw this Contract or any Existing or Additional Sales Contract from consideration by Lienholders.
So... multiple contracts are NOT illegal. They are actually encouraged by our Real Estate Commission.
With regards to your situation, I would believe that you have a duty to notify the lender of all offers (reality is that they won't care and there really is no way to give them this information unless an offer is signed). BUT, the Seller does not HAVE to sign another offer.
For us, I believe this new SS Addendum really screws the Seller. What buyer would want to make an offer knowing that at any time, at any place, the Seller can substitute another contract, and their offer will be null and void.
Sounds like it depends on your State. In Virginia, the bank is the 3rd party and not a party to the contract.