This just in from Ask the Broker:
Question: I put in an offer on a home that is in short sale, but the owner refused to submit my offer to the bank which was the highest offer given. He wants to remain in the home, with investor purchase. My agent told him we submitted an offer and it was still active, so the sellers agent removed from market. House goes in foreclosure 3/9/10/ What can I do to advise bank of my offer that the seller is withholding?
The short answer: there isn’t anything you can do.
The owner is not under any obligation what-so-ever to submit ANY offer to the lender. It doesn’t matter that your offer was the highest offer, it doesn’t matter if he wants to stay in the home. It’s his home, and he controls what offer does and does not go to the bank.
A short sale is really no different than a traditional sale in this matter. No one who puts their home on the market is obligated to consider any offer. In the case of a short sale, yes the lender has to approve an offer, but it is still the seller’s home, and they are in complete control over which offer ”“ if any ”“ is sent on to the lender.
It sounds here like the seller is hoping an investor will purchase his home and lease it back to him. As such, they are only going to submit offers from investors. It is well within their rights to do exactly that.
As an aside, while I don’t think this applies in this particular situation, buyers submitting offers on homes for sale need to remember that price isn’t the only factor sellers consider. See Making an Offer on a Home. It’s not all about the Benjamin’s”¦ for some thoughts on factors that go into a seller’s decision to accept an offer.
Photo Credit: Valerie Everett on Flickr