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The seller can elect to send which ever offer to the bank they please. They could refuse your $650k offer, and submit a $600k offer if they'd like.
You can just contact the listing agent directly and have him/her write your offer. That ought to make your offer outshine the other offers if any. If the seller agent ignores you, he probably has a buyer already.
I think it's a stretch to label it fraud. There could be any number of reasons seller didn't take your offer.
(1) cash offers are more likely to close
(2) another offer may have included a contribution toward loan deficiency
(3) other offer may have longer or shorter closing date
(4) the other offer is from someone who has a relationship with the agent [could be an investor he has worked with, or could be another agent.] Not fraud, just preferential positioning.
(5) seller may have been in negotiations with the other buyer before your offer came in.
(6) seller is not really interested in short selling, the listing is a stall tactic while he strategically defaults and lives payment free until foreclosure. If the agent figures this out, he will have a fit because he has put in months of work for no paycheck. In fact, agent could TRY to collect commission from the seller anyway, based on the language of the listing contract that he is owed commission for bringing a willing and able buyer.
You'd be surprised how many people are offering 75% and more in cash upfront. You might be being outbid, but it's more likely they're picking the offer that will close.
I short sold my condo last June. The first reply is right...I had 4 offers within a week or 2. 2 were way too low and the bank would for sure reject them when the other 2 offers were at asking price. The only reason I picked the buyer I did was because they lived in the complex and were looking at it for a rental property (they did not need to move in asap, as short sales can be painfully slow) and the other bidder was a young first time buyer who probably did not have the patience. In the end, it worked out. It took 3-4 months to sell the place.
PockyClipsNow
2011 May 11, 2:56am
The fraud could be stopped by LETTING BANKS CHOOSE THIER OWN AGENTS.
Its really really reckless and insane that the government (banks) will let Mr Flipsy Scamovichski choose his brother in law Mr Agent McNoEthics to sell his 200k underwater home (and flush all offers except those in the loop).
This situation is probably permanent - the NAR is too powerful.
justme
2011 May 11, 3:50am
PockyClipsNow,
Once the house is foreclosed upon then of course the ban will pick its own agent. Maybe a reason why banks sometime would rather foreclose than do a short sale?
Of course, the banks cannot truly know that the their own handpicked agent is not up to some some of the same shenanigans that have been described above.
bubblesitter
2011 May 11, 6:42am
PockyClipsNow,
Once the house is foreclosed upon then of course the ban will pick its own agent. Maybe a reason why banks sometime would rather foreclose than do a short sale?
Of course, the banks cannot truly know that the their own handpicked agent is not up to some some of the same shenanigans that have been described above.
An agent is an agent. He/she can't be trusted in any circumstances. I am still not able to gauge how much bank is saving by not approving short sale vs foreclosing?
bubblesitter
2011 May 11, 8:51am
You mail me a check for $500
Haha, but there is no guarantee that bank will approve short sale. Nice try. :)
Bap33
2011 May 11, 9:16am
This situation is probably permanent - the NAR is too powerful.
start printing shirts with this on them
You mail me a check for $500 and I will email you a short sale genius calculator spreadsheet
No one's going to pay 500 bucks for a spreadsheet from some guy in a forum.
No one’s going to pay 500 bucks for a spreadsheet from some guy in a forum.
I think it was a joke. The math isn't difficult or obscure.
bubblesitter
2011 May 12, 12:16am
No one’s going to pay 500 bucks for a spreadsheet from some guy in a forum.
I think it was a joke. The math isn’t difficult or obscure.
It is obscure until it sells. :)
So in recent months I overbid 3 percent on one property, 5 percent on another. Been renting for last 8 years and really like to have a home. Still my offer was not selected. It hasn't closed yet, so don't know what price it sold for. My offer was 25 percent down, excellent credit history, no contingencies except loan and inspection. So I think it might be bid price or seller already have pre-selected buyer. Could someone tell me this hypothetical situation is not possible:
Case 1:
Let say person A buys a home for one million in 2007. Person B also buys a house in 2007 for one million.
Both start a short sale with 630k listing price. Listing agent is same for both house.
I put a an offer of 650k for one of house.
Person A bids for B's house. Person B bids for A's house for 651k. Listing agent forward person A and B bid to bank.
case 2:
In case 1, again person A buys a house for one million, starts a short sale for 630k. I put an offer of 650k, but A has a straw buyer and submits an offer of 651k. Straw buyers offer is submitted to bank.
If those could be possible, is there any way to identify it so that I don't take the trouble to go visit the house, put an offer etc.
Or even better is there any way to have your offer sent to bank?