Handling Multiple Offers on a Short Sale
When reading this headline the first question that many struggling with their mortgage payments think is most likely “Is it even possible to have multiple offers on a short sale?” Can a short sale homeowner have multiple offers? Yes, Homeowners may evaluate multiple offers. Think about a short sale as a gold opportunity for buyers who are on the haunt for a comfortable home at a convenient price. The homeowners short sell their property because they cannot afford their mortgage payments, the lenders want to cut their losses, and often the property ends up listed for less than its original value. What better deal can a buyer find?
Yet, the question remains, how to handle those multiple offers?
Discerning steady purchase offers from scams
Normally when a buyer presents an offer, he/she is seriously considering purchasing the property. However, it is not always the case: some offers do not reflect a serious consideration, without proof of funds or other indicators of a commitment that might make the agreement arrive at closing. Therefore, it is essential for all those involved in the process to evaluate each offer with scrutiny, with the help of a lawyer concentrating in New Jersey real estate.
Choosing the best offer or the first to come
In a short sale –the same way as regular sales- many offers may be submitted. When a buyer presents a solid offer, he/she often has to wait for the homeowner to evaluate it and submit it to the lender for consideration. It can take a significant amount of time before a lender (or lenders) approves the sale. During that period, other offers may come in. The handling of a situation such as this can often become quite thorny. The subsequent offers might essentially usurp the original offer or be used as back-up in case the original offer falls through.
Submitting offers to the short sale lender
Different lenders may have different ways that they review short sale offers. Some prefer only to review a single offer at a time and would prefer not to have additional offers submitted to them. Others, often smaller institutions, prefer seeing all offers to choose the one they find strongest. Understanding these preferences is crucial and may be the difference between a successful (and efficient) short sale and one that fails to materialize.
Of course, every situation is somewhat different, and all of these short sale issues quickly get complex. For this reason, if you are in our area it is always advisable to reach out to a Burlington County short sale attorney for tailored assistance on this often-confused short sale process.