Don't Get Bumped on a Short Sale!

Many buyers in today's market are writing offers on properties being offered as short sales. A short sale transaction is the process of selling a home owned by a party who owes more on the mortgage(s) than the home is worth. The lender for that home must agree to accept less than they are owed in order for the house to sell. This process can take weeks or months, depending on the lender. These คอนโดมือสอง เอกมัย transactions are typically negotiated by the listing agent, an attorney or a private short sale negotiator.

When you write an offer on a short sale, be aware of what Section 6 of the California Department of Real Estate standard Short Sale Addendum states:

6. Other Offers . Unless otherwise agreed in writing, after Buyer's offer has been accepted by Seller, (i) Seller has the right to continue to market the property for back-up offers or additional offers; (ii) Seller has the right to accept back-up offers (C.A.R. For PAA, Paragraph 1), and present to Short Sale Lender(s) any accepted back-up offers or additional offers that are received; and (iii) Seller shall notify Buyer when any accepted back-up offers, or subsequent offers are presented to Short Sale Lender(s).

This contract provision must be amended or you can lose the house to another buyer.

Here's how. If the backup offer has terms or a price that is better than what you have offered, the bank may issue a counter offer to you asking you to match or beat the other buyer's purchase price or terms. Even worse, the bank may decide to take the other offer and decline yours. You've just been bumped! Often, this counter offer or decline of your offer, arrives months after your offer was submitted and after you are emotionally invested in buying the house.

How can you avoid having this happen to you? It's all in how your purchase agreement is written.

Protect Yourself

The California Short Sale Addendum Section 6 opens with "unless otherwise agreed in writing" and that's exactly what you need - an agreement in writing that cancels out this contract provision that can get you bumped! Get an agreement with the seller, in writing, not to submit any back-up offers to the short sale lender. You want your offer to be the only one reviewed and either accepted or rejected by the lender.

It's OK for the seller to collect back-up offers in the event you decide not to go ahead with the deal. You don't want those offers submitted to the lender with, or following, yours. With the correct contract language, your offer will be the only offer submitted to the lender and you will not face a late-in-the-game surprise that forces you to beat or match someone else's price, or worse, bumps you right out of the deal.

For questions on this subject, please feel free to contact Dianna Dingman at myagent@sbcglobal.net.