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When a short sale, or any purchase is pending with contingencies, it generally indicates that an offer is under consideration by the lender, and is going through the sometime lengthy process of approval. It has to be approved by many parties, such as investors, accounting/audit, and so on.
It is up to the seller if they will entertain another offer should the first one fall through. That is called a back up offer. The seller still has possession of the property until closing.
I would welcome any other questions since I have sold short sales and foreclosures in Naples, and can assist you in an updated property search.
Downing-Frye Realty, Inc.
A short sale means that the seller of the property is attempting to sell the property at a price that will not pay off the mortgage. The seller paid say $350,000 for the property with a mortgage of $280,000. He is attempting to sell the home for $230,000 so considering the closing costs, the seller will only be able to pay a part of the loan amount when the property closes. The seller is asking the bank to accept the proceeds of the sale as full payment and to forgive the rest. A short sale contingency means that the sale is contingent upon the lender approving the price and the hardship of the seller. This may take up to six months so pendings of this type will be shown for a long time on Trulia.
They have been trying to close this property for almost two years. Does not look like good choice for a back up offer.
Just like what was already stated, contingencies can be multiple things and until a home closes/sold another contract can be presented, if the seller is willing to consider any. The contract that the seller accepted has to be completed or the buyer back out before another contract can be accepted. A second contract is sometimes referred to as a "back up offer". One contingency not mentioned is "the Bank" has to accept the contract that was given to the seller in a Short Sale. A seller can accept a contract in a Short Sale, however it's really up to the bank if they are willing to accept less than what is owed on the mortgage. In the end, it is not the seller who decides if the contract will be accepted through Short Sale, but the Bank who makes the final call. The house was listed May 2011 and went "pending with contingencies" Sept. 26, 2012. In a usual contract, all contingencies are usually cleared up in 30 days or less. In a Short Sale situation, buyers usually make a clause that their contingency timeframes don't start until there is bank approval. This may be the case in why the property has been pending for so long. The mortgage holder was Countrywide, which Bank of America bought out. Bank of America can be (not always) slow on the end of processing with a Short Sale. I can reach out to the agent to see if the seller is accepting any back-ups if you would like.
Please call or email if you have any questions or want to talk about real estate in general.
Nancy Linder, REALTOR
Naples Realty Services, Inc.
4980 Tamiami Trail N., Ste. 200
Naples, FL 34103
Cell Phone: 314-616-2313 (Missouri phone number, but I live and work in Naples year-round)
Pending with Contingencies is the same regardless of condition of sale method. A Contingency is usually a satisfaction of Inspection or finance/mortgage. There are many other Contingencies as well.
Another offer can be presented but can not be agreed to as the property is under contract. The contract would in second position or third etc as the case may be.
Feel free to contact me directly if I may be of further assistance.
Kind Regards, Kevin
Kevin Rathburn, Realtor
239-269-4575 Direct Line