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Marie Strong, Real Estate Pro in Seattle, WA

Pending BU what does it mean?

Asked by Marie Strong, Seattle, WA Thu Oct 22, 2009

Help the community by answering this question:


Karen, I don't think this poster is actually Marie Strong. I looked her up and she seems to be way too experienced for such a question. I looked at "Marie Strongs" profile and it appears that this person is actually trying to reach Marie Strong. Some confusion there...
0 votes Thank Flag Link Fri Oct 23, 2009
Dear Marie,

Pending Back Up means there is a signed offer on a property and the seller is asking for Back Up offers. We are now seeing a lot of listings with Pending Back Up status because of the number of Short Sales that have signed offers with Sellers and those offers have been submitted to the lenders. Since we are experiencing very long closings with Short Sales in many cases, the listing agents are requesting Back Up Offers.

There are several reasons for this. One is that some Buyers are giving up on the Short Sales. In the NWMLS we have a special Short Sale addendum that specifies whether or not the Seller can take multiple offers and also allows the Buyer to back out with notice to the seller.

Due to the natrue of short Sales, lenders like to have multiple offers to review, so the legal opinion of Annie Fitsimmons who answers questions for the Legal Hotline for Realtors, is that if you, as a listing agent, don't show the lender "all the offers", you jeapardize the short sale.

We have always had the ability to ask for back up offers, but until the last two years when we have had a much higher number of short sales, they were rare. Since you are in Seattle, I imagine you are a member of the Northwest MLS and I encourage you to go to the Northwest MLS Express Forms library and read the Back Up addendum and the Back Up Response because they will give you a lot of insight into the procedures.

Good luck
0 votes Thank Flag Link Fri Oct 23, 2009
It is just a status on a listing. In our area we use Pending taking back-ups on most offers, not just short sale or bank owned, until we get through inspections and appraisals etc. It just gives notice that the seller will look at back-up offers until all contingencies have been removed.
0 votes Thank Flag Link Thu Oct 22, 2009
It means the sale is likely a short-sale. Pending Back Up offers.
0 votes Thank Flag Link Thu Oct 22, 2009
It means that there is a contract on the property but the seller wants more offers.

In a short sale situation, it means certain boxes have been checked on the NWMLS Form 22SS that allow the seller to present more offers to the bank and it leaves the home on most broker web sites.

In a non-distresssed situation, it could mean that the seller just wants to keep their options open OR they are not confident about a buyer's ability to close. In a non-distressed situation, it most likely means that the only contingency remaining is that of financing.

I hope that helps
Web Reference:
0 votes Thank Flag Link Thu Oct 22, 2009
It means there's a pending offer on the property but they are accepting backup offers. It's used most on short sales where the parties are waiting for lienholder approval on an offer and the seller wishes to bring in backup offers in case the other offer(s) fail.
0 votes Thank Flag Link Thu Oct 22, 2009
Pending Back Up Offer. They are excepting back ups.
Web Reference:
0 votes Thank Flag Link Thu Oct 22, 2009
It means the seller is actively entertaining backup offers. Today it also largely means that the sale is likely a short sale.

I wish they would have a Pending-Short Sale category because Pending BU is useful, but I don't want to taint my listings with any inference that they might be a short sale when they are not.
0 votes Thank Flag Link Thu Oct 22, 2009
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