Home Buying in 85253>Question Details

Gary, Home Buyer in Paradise Valley, AZ

A listing indicates a short-sale house is "Under Contract (MLS-listed)". What does that mean? Is it different than "pending" ?

Asked by Gary, Paradise Valley, AZ Mon Apr 11, 2011

Some agencies list the home as "active" and some list it as "Under Contract (MLS-listed)".

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Gary, short sales are treated a little differently because they require a 3rd-party (lender) approval. "Under Contract" and/or AWC on a short sale is not the same as PENDING. It's a very fine distinction. When a short sale goes "under contract", the actual purchase contract is signed by buyer and seller and sent to the seller's lender for approval. That's where the "contingency" comes from in Active w/ Contingencies (AWC). The entire transaction is contingent upon the lender's approval. Once the seller's lender approves the offer and the seller and their lender are in agreement on terms, the listing is then changed to PENDING, escrow is opened, inspections begin, and everything starts moving forward.

In a traditional sale, as soon as the contract is signed by both parties the listing should go into PENDING status unless there is a contingency involved, for example, the buyer needs to sell his current residence.
1 vote Thank Flag Link Wed Jun 1, 2011
I was under the impression that short sales were cash only purchases???
0 votes Thank Flag Link Mon Aug 22, 2016
Hey Gary,

This is known as an AWC listing, or active with contingency. It simply means that the sellers have accepted an offer and bank approval of the short sale is pending. AWC allows individuals to submit backup offers and for sellers to keep the property on the market. If you have any other questions please feel free to visit my highly innovative website or call/email me. If you are interested in looking at some properties, just let me know. Have and wonderful day!

0 votes Thank Flag Link Thu Jul 21, 2011
A lot of times when the listing is AWC they will accept backup offers just in case the first one falls through.
0 votes Thank Flag Link Thu Jun 2, 2011
Oh my, lots of answers but no real answer to the question. Many times a short sale will be listed as AWC-I here in Arizona. That means it is Active with Contingencies - Seller Instructions. That means it is Active but accepting only backup contracts because they are awaiting Seller Instructions (meaning the Sellers lender must issue an approval). The sale is contingent on the Seller's lender approval. We only work with one contract at a time and any other offers must only be backup offers.

We are a Short Sale and Foreclosure Resource and happy to answer any questions.

Kevin and Debra Hammontree, info@HammontreeHomes.com
0 votes Thank Flag Link Fri May 27, 2011
If it is a short sale and an offer has been submitted to the bank it is usually listed as under contract. Pending means that the contract has been accepted and it is in escrow.
0 votes Thank Flag Link Wed May 25, 2011
Depends on what it says. Here in Tucson, it is suppose to be Active Contingent if the property is listed on MLS for sale. If it is a Short Sale, and they have an "accpeted offer", it changes to Active Capa. However, the Bank still has not approved it, only the seller who most likely would accept nearly any offer as they are asking the bank to forgive the debt.
Many agents will no longer show a house once there is an "accepted" offer, which can or could be a mistake depending on the situation. I had a listing that closed last month that was Active Contingent, the Buyers asked for a 6 month extention to close which left the door open for my client and their offer.

Best of luck.
0 votes Thank Flag Link Tue Apr 12, 2011
I disagree with Phil on this one. Perhaps Florida uses different terms than where I am. We don't use the term pending at all. Under Contract means the offer is there and has been accepted and there are no contingencies other than financing, it's just waiting to close. Under Contract/Continue to Show is what we use to indicate an offer that has contingencies other than financing. Active means it is for sale and has no contract on it yet.

Ask your agent since terms vary from place to place - each MLS system uses terms that vary somewhat it seems. It's like Coke, some places call it pop and some call it soda.
0 votes Thank Flag Link Mon Apr 11, 2011
Your buyers agent can assist you with all these questions

Not reviewing all documents you are seeing

Under contract & pending could mean the same thing

Recommend to keep a watch on the property HOWEVER keep looking

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon Apr 11, 2011
Pending would mean that all the contingencies on the contract have been cleared/removed and the both parties are ready to close.
Under contract (or contingent) means that there is a contract in place but the contingencies have still not been met. In the case of a short sale one contingency is usually the lender approval.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Apr 11, 2011
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