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Just like any real estate deal, the contract is already in place and can not be killed by a better deal that comes later. You should not prestent the backup to the bank no matter how much it is...yet...
When you get your short sale approval letter, it will probably say the name of the buyer and a close time frame on the approval letter. If for some reason that buyer falls through, that is when you turn to the backup offer. Changing the name on the approval letter is an easy fix and the lender will do this with no problem. Changing the price is more of a pain. If the price is higher, the lender will make the change, but it's still a pain. (new HUD, Etc) If the backup offer is lower and you have to go back to the bank to renegotiate the price...have fun with that!
With the current state of the market back-up offers are good to have. But, what is most important is that you do all your homework on the first offer. Make sure all approvals are in place, all conditions are spelled out UP FRONT and everyone understands the process. Do what ever you can do as an agent to make sure the deal you're submitting to the lender is a solid one. (i.e- no 100% financed deals, buyers understands the "AS IS" part of the contract, buyer is rock solid on credit, etc, etc, etc.). The bottom line is any change after you get the approval is a PAIN! Try to avoid it. BUT, do take backups just in case!
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Frank Wible
REMAX ALL PROS
Turnersville, NJ 08012
(856) 228-2990
[url="http://www.ShortSaleNJ.com/"]http://www.ShortSaleNJ.com/[/url]
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