Home Buying in Frederick>Question Details

C.quinones, Home Buyer in Frederick, MD

Hi all, Is it normal for a short sale under contract to still be shown?

Asked by C.quinones, Frederick, MD Thu Sep 27, 2012

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13
C. Quinones,

You have asked 8 questions regarding your short sale purchase, do you have an agent??
1 vote Thank Flag Link Thu Sep 27, 2012
Technically, a home can be shown right up until settlement is complete. It's not normal to do this, but it's allowed.
1 vote Thank Flag Link Thu Sep 27, 2012
If it is agreed upon in the contract, it can. Read your contracts carefully. I am seeing it more and more. This I assume is because often short sales take time, often many months. When that happens some buyers get discouraged and withdraw their offer. That said a lot of banks want the properties continued marketed as active so to generate more offers coming in. Just know a buyer can ask for it not to be marketed active upon sellers signing the offer and if that is agreed upon it won't be. However that also can prevent your offer from being accepted by some sellers / banks. Hope this answer helps.
1 vote Thank Flag Link Thu Sep 27, 2012
some banks want the seller to continue to show the property in case the buyer decides to walk or can't get financing for back up contracts.
1 vote Thank Flag Link Thu Sep 27, 2012
We normally do not do it in Frederick or Montgomery County's but see no reason why you could not continue to have the home shown.

Greg Myers
RE/MAX Realty Group
1 vote Thank Flag Link Thu Sep 27, 2012
Hi C.

Yes it is. In FL, there is an addendum that has a choice of either 'to be shown' or 'not to be shown'. Most banks will not accept an offer without the ability to continue to show for backup offers. At least all of the shorties of done.

GOOD LUCK.

Scott Miller
Realty Associates
Boca Raton, FL
1 vote Thank Flag Link Thu Sep 27, 2012
Hi, Yes it is...shortsales fall apart often. Recent changes in the banking industry give us alot of hope for the shortsale process now.

Chris
1 vote Thank Flag Link Thu Sep 27, 2012
Yes, normal for any house under contract with contingencies on it to be shown and a short sale has a contingency that the bank MUST approve the sale which is a HUGE contingency. Has the bank sent a written acceptance letter? Until you get that it can fall apart and the seller can look for back up offers up to the time it closes. Remember ---- it is still the sellers house and not yours.
1 vote Thank Flag Link Thu Sep 27, 2012
Hi Tim, No...the bank has not sent me anything at all. The only thing I know is that the bank has already done the BPO.
Flag Thu Sep 27, 2012
You can only sell the home one time to one buyer, hopefully your buyer is commited to buying your short sale and has put down a deposit into escrow. If you feel you have a good buyer I would not keep showing the home. If you feel your buyer might not be commited then it would be a good idea to have a back up offer.
0 votes Thank Flag Link Fri Sep 28, 2012
This will depend on the contract and the bank. Many banks insist that the property remain on the market so that they can receive backup offers. On short sales which take a long time to be approved, the buyer often gets tired of waiting and moves on. Before showing a short sale that is listed as active, I always contact the agent to confirm if they have any offers on the property, as this really is quite customary.
0 votes Thank Flag Link Fri Sep 28, 2012
It's up to the listing agent and depends which contract was used. The MAR addendum allows the seller to continue to market the property even while it's under contract. This isn't the most convenient situation for the seller if they are still living in the home and isn't necessarily the best strategy if they send more than 1 offer to the bank. Most listing agents don't continue to show the property but it is possible.
0 votes Thank Flag Link Thu Sep 27, 2012
We do NOT allow our properties that are under contract to be shown whether they are traditional sales or short sales unless there is a release in hand.
0 votes Thank Flag Link Thu Sep 27, 2012
C, This answer is dependent on how the contract is written (as you will notice from the number of different responses to your question). There is an addendum to the Maryland contract that states that the seller may continue to market the home (show it) while the seller and buyer are waiting for approval of the short sale. If another buyer is interested in the home, they can submit an offer to be held as a back-up if the initial offer falls through. Hope this helps!
0 votes Thank Flag Link Thu Sep 27, 2012
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