As an Exclusive Buyer's Agent here in the Chicago market, I can tell you that multiple offers for REO properties with it's subsequent, Highest, Best and Final offers is becoming very common. I would like to use this forum to express my utter frustration and anger towards the system currently in place to handle these multiple offer scenarios.
To make it simple; WHY DOES THIS NEED TO BE A 'CLOSED BID' process???? To make it easier and more fair in my personal and professional opinion I advocate an OPEN BID platform whereby the end buyer/investor can see the other bids and adjust their HBF accordingly. The closed bid has a great flaw in that the buyer/investor who really wants the property is 'shooting in the dark' without knowing what the 'other guy' is thinking. I appreciate that Banks and Asset Managers believe this will yield the 'highest' offer but I think they can arrive at that number by opening it up.
The downside to this as I speak with my clients presented with these multiple offers is they get discouraged and frustrated with the 'buying a foreclosure' process and we as Real Estate and Banking professionals LOSE credibility and trust due to the perception that we are GREEDY and playing games. Why not have a transparent OPEN BID (ie. Auction) scenario which will most probably arrive at the dollar amount the seller wants and give the buyer their 'best shot' so at least they see where they need to be versus 'winging it'.
Oh how it would SUCK if my client today loses a HBF offer on a beautiful SFR because they were off by $1,000 on their offer!!!!!