Okay, so I have driven into the ground a hundred times the issue around home ownership in a REO versus a short sale. But, today I have had to do it again twice.
Please people….It is simple. In a short sale, the homeowner owns the home until closing. The bank does not own the home, but has to allow (approve) receiving a net less than they are owed. In a REO, the lender has foreclosed and taken title. In a REO, the bank owns the home…the bank is the seller.
Buyers are the worse for expecting an offer made on a short sale to be submitted to the lender for review whether or not the seller has already accepted an offer. Newsflash, the seller will be shown all offers made on a listing because they own the home. However, once they accept an offer, only the accepted offer is sent to the lender for review for short sale approval because the lender does not own the home.
If a buyer presents an offer at the same time that other offers have been presented, and no offer has yet been accepted, then we are in a multiple offer situation. A multiple offer situation with a short sale is handled no different than in a standard retail sale. The seller chooses the offer to accept. The offer accepted on a short sale listing is the one sent to the lender. It is on the agents to make sure everyone understands this.
This is important to remember in short sale transactions. As always Rapid Real Estate Solutions helps to simplify the short sale process. Our helpful website is www.RRES-ManageMyShortSale.com
To Your Success!
Please people….It is simple. In a short sale, the homeowner owns the home until closing. The bank does not own the home, but has to allow (approve) receiving a net less than they are owed. In a REO, the lender has foreclosed and taken title. In a REO, the bank owns the home…the bank is the seller.
Buyers are the worse for expecting an offer made on a short sale to be submitted to the lender for review whether or not the seller has already accepted an offer. Newsflash, the seller will be shown all offers made on a listing because they own the home. However, once they accept an offer, only the accepted offer is sent to the lender for review for short sale approval because the lender does not own the home.
If a buyer presents an offer at the same time that other offers have been presented, and no offer has yet been accepted, then we are in a multiple offer situation. A multiple offer situation with a short sale is handled no different than in a standard retail sale. The seller chooses the offer to accept. The offer accepted on a short sale listing is the one sent to the lender. It is on the agents to make sure everyone understands this.
This is important to remember in short sale transactions. As always Rapid Real Estate Solutions helps to simplify the short sale process. Our helpful website is www.RRES-ManageMyShortSale.com
To Your Success!
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