| Anyone who has ever purchased a real estate short | | | | third party short sale vendor. Upon making the offer |
| sale can tell you that the process is filled with | | | | we were advised that there was another previous |
| uncertainty and potential headaches. You can wait for | | | | first offer but that my client's offer was the highest |
| months after making an offer on a short sale to find | | | | (the listing agent probably should not have been |
| out if the bank will accept your offer and then wait | | | | telling us that). I kept in close contact with the listing |
| for weeks to close. As a Chicago real estate broker I | | | | agent and asked for an update each week. We were |
| experienced two separate incidents over the past | | | | eventually advised that the bank was looking for my |
| couple of weeks that I would like to share with you. | | | | client's "highest and best" offer. This is typical in both |
| Buyer Gets Tired of Waiting and Walks | | | | short sale and foreclosure listings where there are |
| I had a client here in the city that made an offer on | | | | multiple offers. After submitting this to the listing |
| his second purchase in 2009 of a distressed Chicago | | | | agent we were told that my client was still the |
| property. His first purchase was a foreclosure and | | | | highest bidder. |
| the transaction closed with few problems. On the | | | | After several weeks of more waiting I was informed |
| second property he made an offer on a three-flat | | | | by the listing agent that the bank was accepting the |
| where the listing agent was using a third-party "short | | | | other lower offer instead of my client's offer. The |
| sale" vendor. This type of service vendor acts as an | | | | listing agent stated that the bank was accepting the |
| intermediary between the listing agent and the bank | | | | initial offer because if it chose to accept my client's |
| and is supposed to simplify the process. In this | | | | offer, it would have to start its internal review |
| situation what I experienced was just the opposite. | | | | process all over again. Unbelievable! While I'm not sure |
| In short sale transactions I believe that you need to | | | | how much higher my client's offer was compared to |
| keep pressure on the listing agent to contact the | | | | the first offer, it's not hard to understand why our |
| bank or these transactions can sit on a bank asset | | | | banking system is in turmoil when financial institutions |
| manager's desk for months. In this situation the listing | | | | are rejecting higher offers due to administrative |
| agent kept advising us that because of the short sale | | | | bottlenecks. |
| vendor it was out of his hands and he was unable to | | | | Experience Counts |
| even contact the bank. My client was finally | | | | Purchasing distressed Chicago real estate requires an |
| frustrated to the point where he rescinded his offer. | | | | experienced buyer broker that understands the |
| Fortunately he was able to find another suitable | | | | process and can guide you through situations similar |
| foreclosure to meet his investment needs which he | | | | to those described above. If you do choose to make |
| promptly closed on. | | | | an offer on a short sale you should continue to look |
| Buyer has High Offer but Bank Selects Other OfferI | | | | at other properties due to the high level of |
| had a Chicago suburban real estate client that made | | | | uncertainty involved. I also recommend that you |
| an offer on a short sale property in the western | | | | obtain experienced legal counsel to thoroughly review |
| suburbs. Fortunately the listing agent was not using a | | | | the transaction for any potential pitfalls. |