Frustrations with Short Sale Offers and then some...

Working as a buyer's agent mostly, I have great frustration with offers I submit on short sales - or what seems like every offer these days. WHY? If we are not the first offer received, we are then a 'back-up', even if our subsequent offer is higher than the first with better terms. Agents are not required to write in the MLS that a first offer has been received, even if one has been 'accepted' by the homeowner but the bank is still looking at. At other times agents will present all offers, share what has come in, and in some cases creating a 'bidding war'.

So what gives? Representing buyers, I give them all scenarios, but it just doesn't seem fair that without regulation, we are at the mercy of not only listing agents, but the banks who may not have the time to ask if there are any other offers out there.

We need a straightforward rule to deal with ALL short sale offers, whether it is the first one received that stays in first place, or whether all offers are presented to the bank, or whether the highest and best is offered at the time of acceptance by the lender. Obviously the lenders need an offer to begin the process, but if another comes in higher, better, what then?

Any thoughts out there that you have encountered we need some kind of guidelines, or not?