Expert: Dick Dennis - 8/5/2010

Question
I have been informed that my offer on a short sale will not be submitted to the lender, because the seller has the right to choose the next buyer.  I offered $31,000. more, but Chase Bank will never know it.  Why do sellers get to choose what offer will go to the bank?  How can I inform the bank?

Answer
First of all, Bonnie, you DO have the right to have your offer to purchase to be presented to the seller, and/or the bank in this case. If at any time your offer is not presented, you may go to the local Board of Realtors and/or the state department of real estate. The broker can get into big trouble for not presenting your offer. My bet is that the winning offer is from the same office that has the listing . . . bigger commission, etc.

But it is true that the seller of any particular property has the right to refuse any offer and accept another even if it is lower in price, but that is usually because the "better" offer is making his offer much less problematic.

On the other hand, banks have been notorious for refusing better total offers because the winning buyer is offering ALL CASH. No concern about getting a loan or getting credit approved.

But if your offer happens to be all cash, too, then you should contact the head broker for the real estate office and tell him that you intend to take your plight to the Board of Realtors and the department of real estate. The broker is leaving him/herself open for a big suit . . . if you have a real estate attorney ready to step into this matter.  I do wish you well.

Dick Dennis
dixiedee13@aol.com