I was speaking with a realtor here in California who specializes in short sale listings. If I understood her correctly, she says that the listing agent is required to only submit one offer at a time to the lender for approval.
For instance, if there are 3 legitimate offers submitted after the property has been listed, the seller’s agent along with the homeowner review the three offers and select which *one* to present to the lender for approval. If that is rejected, then they select the next best offer and present that, and so on.
If there are forum members that are experienced in CA short sale (especially as the seller’s agent), can you reply and let me know if I have this right? It sure seems wrong. If I were a lender, I would want to see all legitimate offers and approve the one or ones that were the best for the lender.
This is correct. Most lenders only want to see the “best” offer which means the one that the seller has selected. Keep in mind that the owner is still the seller and the bank is merely agreeing to accept less than what is owed on the loan and agreeing to release the lien. An experiences listing agent would work with the seller to accept the best offer. It may not be the highest offer because they know that the home will not appraise for that amount then this could cause the deal to fall apart. The seller will also look at the strength of they buyer. If the buyer is putting down a minimal down payment or is using financing that has restrictions on the condition of the house (e.g. FHA) then they may select a different offer. If they select the lowest offer and the bank determines that the property is worth more then this could cause the deal to fall apart as well.
What if a stronger buyer’s offer is presented to the seller after the seller has already sent a best offer (at that time) to the lender. Can the seller if they choose send additional signed contracts to the lender for review if the California short sale addendum specifically clause 6 (which allows other offers to be submitted to the lender) has been signed by the buyer of the 1st contract ?
HI Jim, Regardless of the fact that it is a foreclosure or a traditional sale a seller can only have one active contract. If there was a better offer on a traditional sale a seller would not be able to accept a new offer and the same hold true for a short sale. The owner of the property is still the seller, not the bank.
Go to court and ask the Bank to proucde the NOTE! When they can’t proucde the NOTE (because they monetized it. Converted it to money.) the case will be dismissed! You don?t have to repay a dept when the lender has been restored. By monetizing the NOTE the bank was restored. Why did the bank do that? To have their cake and the principle and interest paid in each month too (Greed). Banks print money by typing on their computer!
Hi Chinju, Although the “produce the original note” tactic has been successful in delaying a foreclosure it does not stop a foreclosure or mean that a homeowner gets their home for free. Even if the not is lost the lender would simply need to file an Affidavit of Lost Original and proceed with the foreclosure.