What is the protocol of submitting offers to banks on Short Sales???

What is the protocol on delivering offers to the bank???

My homeowner was facing foreclosure & I worked to get a legitimate offer for her house, albeit rather low.

This low offer helped save the home as the bank postponed the auction which was set for later that day.

Consequently, the very next day I received another offer which is 10% more!

I had not a chance to take it off the MLS before receiving the new offer.

What is protocol with short sales?
I already have an accepted low offer submitted, do I muddy the waters and potentially confuse the already confused bank by submitting the higher offer even though my seller already accepted the low offer???

Or do I tell the better offer to please be in "Back Up" position as the first offer may very well be rejected???


Views: 231

Reply to This

Replies to This Discussion

what would you do in a normal transaction?  Exactly.  You already executed an offer, so you MAY NOT execute another one. If your state has an attorney review period, you may reject an offer within that time frame.  Honestly, if you are unclear about how contracts work, you may want to let a professional handle this before you get sued.

I have to totally agree with Joseph in that you'd probably be a little better off in getting the seller's attorney involved in this process since it appears that you may need a little more training regarding short sales. Additionally, I'd recommend taking Mike up on his offer on the CSSG designation training. No one is implying that you're completely a novice when it comes to real estate and/or short sales, but I've come to realize that the only people who feel as if they've learned all that they need to know are the ones who are no longer viable to this business.

I have been doing real estate for 12 years and Short Sales for 7 years, and there have been several changes in California & Federal Law the past couple years.  I have talked to local agents who give me contradicting information.  I will call the California Association of Realtors Legal Hotline to see what they have to say.
The first thing you should do is contact the sellers attorney and see if he can get out of the first contract. However, a higher offer is not necessarily a better offer.  You must first determine who is the stronger buyer most likely to close.  I will always take a lower cash offer over a higher financed offer, or a financed offer with a large down payment over a higher offer that has a low downpayment.

I would suggest our CSSG online training program Kenneth.  If you are uncertain about what to do in situations like this, this will help you a great deal.  We made it inexpensive deliberately - http://www.theshortsaleguide.com/profiles/blogs/certified-short-sal...


It will give you the knowledge and resources to confidently do short sales.

Only one accepted contract per transaction of anything at time .   Now that the low ball contract was accepted s/he has to be counter and buyer will have to decide to accept are quit. Just thinking out loud 
It really shouldn't matter what the offer is as long as the bank accepts it you should work it and see if the other buyers would hang in there as a back up.  You can execute the other offer as a "Back Up".  With these banks taking so long buyers do walk and if your first buyer walks then you can submit the back up and hopefully not loose too much time.  Of course everytime you submit an offer the bank pretty much starts over so be ready to submit the entire short sale package again...Just in case.  Good Luck!


Once you execute an offer, that is considered the accepted offer. Take the other offer as a backup( get it executed as well but put an addendum together stating that it is a backup offer).  Your client's lender is going to have the property appraised as part of the process and if they feel the offer is low, they will counter. If the low offer bails on the counter, go to the backup offer and see if they are interested. If not, it's back on market--good luck



Ocwen Contacts Short Sale Package

Started by Jan Baron in Rants and Raves. Last reply by Anna Wilk Jan 14, 2016. 5 Replies

Shellpoint Mortgage

Started by Celeste ODea in General Discussion. Last reply by Brett Goldsmith Sep 4, 2015. 3 Replies

Extension Fees & Closing

Started by Colleen J Couse in Rants and Raves. Last reply by Brett Goldsmith Sep 3, 2015. 1 Reply

© 2021   Created by Mike Linkenauger.   Powered by

Badges  |  Report an Issue  |  Terms of Service