Real Estate Short Sale

Q: I have put an offer on a single family residence at $2,000 over the asking price.

The property is a short sale and the bank has already received seven offers on it. The deadline to accept or deny my offer was 5:00pm last Wednesday.

Instead of accepting or rejecting my offer, the bank contacted the agent saying they are waiting until Monday to make a decision. What are my options and what are they trying to do?

A: Here’s what’s happening. The bank is trying to make a decision in a timely manner and your attempt to force the issue isn't working. (Nice try, but no dice.)

So, you have a choice. You can formally withdraw your offer or you can let it sit and see what happens.

Each lender has a process by which it has to evaluate each of the offers that has come in for REO property to see which one is the best – best isn't always the highest offer, by the way. It could mean they're looking for the strongest buyer, or one who is able to use the bank's financing (which is another way for them to recoup their investment.)

I'd have your agent stay in touch with the lender to smooth things along and make sure the lender has all the information he or she needs to make a decision. It's possible the lender will come back to you (and everyone else) on Monday to ask for another round of bidding. Or, the lender might simply come back and say, yes or no.

Unless you formally withdraw your offer, at that time you can decide whether to agree to purchase the property if you're given the opportunity.

By the way, I hope you're using a real estate attorney. Foreclosures and short sales are tough purchases and I'd hate to see you get caught because you didn't have anyone representing your legal interest in the deal. Unless your broker is also a real estate attorney (and even if he is, he can't be both to you in the same transaction in some states), you should hire a real estate attorney.

NOTE: Ilyce R. Glink's latest ebooks are "Credit Scoring Secrets" and "How to Find a Great Real Estate Agent," which are available at her website, www.thinkglink.com.If you have questions, you can call her radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST. You can also write to Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact her through her website, www.thinkglink.com © 2007 by Ilyce R. Glink. Distributed by Tribune Media Services