If the agent was prepared, with the paperwork, as an agent who does a lot of short sales should be, much of the work with a lender can be done either before listing the property, or soon thereafter. If everything has lined up properly, this property could indeed have jumped through most of the short sale lender hoops, and could conceivably be getting close to closing. Faster than most, but definitely possible.
Whether this house would actually be open to not only receiving a backup offer, but even accepting a higher bid, is questionable. One problem with short sales - for a buyer - is you don't usually know how deep the process has gone, so you sometimes can lose out to a higher bidder, late in the process. I have personally been on both sides of that coin. That's a good reason to focus on properties that are already owned by the bank, rather than "hope" yours is the eventual "winner" out of multiple "buyers" in a short sale scenario.
That's just my preference. Sorry if this adds to the confusion, rather than clarifying.
The property you asked about is "Pending" (see below) but the Agent Remarks state "Back-up Offers".
To help clarify some of the confusion about "status" in the MLS, the definitions below are taken directly from the MLS Rules and Regulations by which all Realtors, Agents and Brokers must adhere as subscribers to the MLS. Also, statuses must be changed to Back-up or Pending within 48 hours of a contract signed by both parties (buyer and seller).
Active (A): A valid listing contract exists and no offer (with or without contingencies) has been accepted. This is an On-Market status.
Back-Up (B): Offer accepted and either 1) Seller requests that property remain in an On-Market status and is looking for back-up offers, or 2) the sale is subject to court or other third party approval. This is an On-Market status.
Hold (H): A valid listing contract is in effect, however, because of various reasons such as repairs, illness, guests, etc., the Seller has requested that temporarily there be no showings. This is an On-Market status.
Withdrawn (W): A valid listing contract is in effect, however the property is no longer being marketed.
Pending (P): The Seller has accepted an offer and is not soliciting offers through the MLS. This is an Off-Market status.
Canceled (C): The listing agreement has been canceled. This is an Off-Market status.
Expired (X): The listing agreement has expired. The time frame of the existing listing contract has run out. This is an Off-Market status.
Sold (S): Escrow has closed. This is an Off-Market status.
Leased (L): The property has been leased. This is an Off-Market status.
I hope this helps to understand how the different statuses are defined.
Broker & Realtor
Orange County CA
2008 Chair MLS Committee - PWR
2008 SoCal MLS Board of Directors
2009 PWR Board of Directors
2009 SoCal MLS Board of Directors
That home at 25252 Clemens, Lake Forest, is now listed as PENDING, which means it is being purchased, and now under contract, and possibly in escrow waiting for funding.
Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.
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In answer to your most recent question regarding unpaid taxes and / or HOA those items will get paid through escrow at closing from the sellers funds by way of a reduction in the payoff to the lender. Remember the seller is "broke" when doing a short sale or the bank would not allow it. Sometimes the HOA fees may be a little higher than what was originally estimated and eventually approved by the lenders but a good Short Sale Listing Agent will know to go to the HOA and request a short payoff of their fees too. "Something is better than Nothing" for the HOA.
I currently have 16 Short Sales in-process and although it can be frustrating to everyone; Buyer & Buyer's Agent / Seller & Seller's Agent, Escrow Officer, HOA and everyone else at the end of the day the buyer gets a GREAT deal. Most importantly, when the two agents work together, the outcome is wonderful.
As Jacqueline said earlier sometimes appliances "go missing" but if the Listing Agent has a good rapport with the Seller they can keep them level-headed and make sure the appliances stay. Sometimes sellers will exclude the appliances but truly want to sell the appliances on their own rather than take them to get more cash in their pocket. The buyer of the property could also be the buyer of the appliances directly with the seller and that has nothing to do with the agents or the Real Estate transaction.
As Bob also said, REO escrows are shorter - that's true, BUT, you may not end up with the house becasue the bank may switch and accept another offer when you think you've gotten the house. The one thing about a short sale that's true, the buyer wants you to stay in the deal and you actually have a signed agreement with the actual seller (the bank is not the seller in a short sale).
Best of luck,
Broker & Reator
Orange County, CA
When there are additional loans on the property, most of these - not all - are going to be "wiped out" as a result of the short sale. Even so, the holders of said loans need to be part of the process, to acknowledge that their loan is either being substantially reduced, or wiped out completely.
In addition, most of the primary loan holders are still ill equipped to effectively process the Tsunami of loans that they are being forced to deal with. In many cases, the right hand ( the people your agent is negotiating with to accept a lower payoff.) doesn't know what the left hand ( the people in a separate department, who are processing the actual foreclosure.) is doing. In at least 50% of cases a property that was TRYING to get a short sale, actually eventually becomes foreclosed, instead.
The property then usually becomes an REO - a lender repossession, except in rare cases where it was actually bought by a third party - either a secondary lien holder, or an actual cash buyer - at the court house auction. An REO is much simpler to buy and usually has a considerably shorter escrow than a short sale listing.
I hope this hasn't confused you even further. Call me or email me if you have further questions. Thanks for your time.
It is unusual for a bank to respond this quickly however. Probably multiple offers is my guess.
The home was being offered for sale at $397k and, according to the pricing history, dropped to $205k the same day the property went into escrow. Again, what most likely happened is the Seller received a lowball offer and is using that offer to determine qualification for the short sale.
Finally, the property is incorrectly coded as "Pending" because the agent remarks (only viewable by mls members) state that the Seller is accepting back up offers, so status should be noted as "Backup Offers".
Hope that helps!
To answer your question about selling quickly, houses under $500k are selling quickly, whether as a short sale, or as a lender REO. In addition to selling quickly, there are usually multiple offers, and it is not unusual - in South Orange County, anyway, for such a property to close escrow at a higher than list price.
This house was listed on 12/3 and went into escrow on 12/30. It will probably close escrow by March 1st, and for a price higher than $205k. ( Short sales typically take a lot longer to guide through escrow.) In addition, the majority of short sales have 5 to 10 prospective buyers "thinking" they are the successful bidder, only to be surprised 2 weeks, or 2 months later, that someone else either outbid them, or out-qualified them.
Lender repossessions ( REO's.) are a much better way to go, in that decisions are usually made in hours or a few days, at most, rather than weeks - or months, like most short sales. If you would like some Realtor assistance to help you look for, locate, and make a successful offer on a lender repo, my 32+ years of local experience will likely serve you well. I can be reached at 949-643-2100. Good luck in your search.