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  • An exceptionally low offer runs the risk of not being approved by the lender and may put the seller in imminent danger of foreclosure.
  • From the buyer's perspective, if the lender is not going to approve the contract and the buyer has waited months he or she may have missed out on other properties that would have been suitable and available.
  • Even if the contract is approved by the lender, in most states, the lender may require the seller to pay back the deficiency.
  • Remember, it is the duty of both the seller and buyer agent's to protect and promote the interest of their clients. Both agents have a duty to negotiate the best price and terms for their buyer or seller prior to the contract being submitted to the lender for approval.