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Regular Visitor
Kymani
Posts: 8
Registered: ‎10-11-2008
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Does the seller of a short sale have input over what offer is accepted?

Since the bank of the seller must "approve" the short sale to begin with does the seller have any say so over whose offer to accept?

 

I know someone who is trying to do a short sale with their lender. Let's say the bank approves the short sale. The approval simply means the bank is allowing the homeowner to sell the house for less than what they owe.

 

If I submit an offer that is within the approved short sale price can the seller (homeowner)select my offer over others?

Regular Contributor
FinallyHome
Posts: 107
Registered: ‎03-22-2008
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Re: Does the seller of a short sale have input over what offer is accepted?

On a shortsale, it is the Banks decision since they own the note and the Homeowner is trying to sell it to avoid foreclosure.  The Bank makes the decision, not the Seller.  The Seller will have to sign their signatures on the offer from a potential buyer, but in the end the Bank makes the final decision.

 

 

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Frenchie
Posts: 44
Registered: ‎02-26-2009
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Re: Does the seller of a short sale have input over what offer is accepted?

Yes the bank has final say but the owner is still the owner until the bank officially forecloses soooo the owner can turn down an offer even if the bank accepts it. That's why short sales are so tough because a lot of times the bank says yes and the owner is desperately trying to stay in their home so they decline any offer that comes through. A lot of homeowners are holding up their short sales to buy time to find alternate ways to catch up on their delinquent mortgage.
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tazman
Posts: 67
Registered: ‎03-07-2008
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Re: Does the seller of a short sale have input over what offer is accepted?

I get the impression from your question that you are trying to "game" the process so you can swoop in and get a sweetheart deal on buying your friend's property.  I would advise against that.  Put in your offer and see if the bank accepts it.  Yes, the seller can decide which offer to accept, but don't try to play games.  If there is someone else out there that is willing to pay more for the property, IMO it is morally wrong to not pass on the offer to the bank.  In other words, you're stealing from the bank by trying to have your friend "select" your offer.  Legally, you are probably safe, but like I said, morally it is just reprehensible.
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Kymani
Posts: 8
Registered: ‎10-11-2008
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Re: Does the seller of a short sale have input over what offer is accepted?

Stealing from the bank really Tazman?!? How is it stealing from the bank if they have the final say so anywhay? How is that playing games? Did you really read my question?? I was merely asking if the homeowner has any input there's a big difference of trying to run "game" and asking a legitimate question. 

 

 I don't even know the homeowner personally, I just know that the home will be up for sale soon.

 

So you and your "Moral Compass" should feel at ease.:smileyvery-happy:

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jenfrank76
Posts: 11
Registered: ‎01-14-2009
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Re: Does the seller of a short sale have input over what offer is accepted?

There is someone in my office that has had his home in "short sale" for over a year.  He sees all the offers that come in for his home but the bank has yet to accept one.  I think the bigger overall problem is that banks are very unwilling to accept offers much lower than what is owed   Meanwhile, he hasn't paid any mortgage or rent and is just banking the money. Instead of just foreclosing, putting the house up for auction or REO, they are sitting on it.  
Regular Visitor
Kymani
Posts: 8
Registered: ‎10-11-2008
0

Re: Does the seller of a short sale have input over what offer is accepted?

Thanks for the info. I guess the banks are most concerned about their bottom line (which makes sense from a business standpoint). I guess in some situations it's best to wait it out and see if/when the property will become REO.

 

On another note it's kind of sad that some banks are unwilling to take offers that they think are too low, because it seems eventually they will foreclose and will have to sell it cheap anyway as an REO.  This is too bad for the homeowner because instead of having a short sale to try and salvage their credit, the home is foreclosed and the bank will sell the home for around the same price anyway.