What's the difference between 'contingent', 'in escrow', 'accepting backup offers'?
Posted by Tony Leocadio Admin on Wednesday, March 11th, 2009 at 7:22am.How come this website has a home listed as In Escrow, while another has it listed as Contingent, and another as Accepting Backup Offers???
Contingent, in escrow, and accepting backup offers, all really mean that the home is in escrow..
When an offer gets accepted, the agent will change the status on the MLS to 'back up'. That lets the other agents know that an offer has been accepted, but they can still show the home to clients. If they wanted to write an offer, it would be as a 'back up' offer in case the escrow with the first offer did not work out.
Once a buyer removes all of their contingencies, the agent will (should) change the status on the MLS to 'pending'..
Most buyers that I know do not write backup offers, and many agents do not show those houses after they go into escrow. .
To make matters complicated, the home you are asking about is a short sale. The seller may have accepted an offer, but the bank that holds their mortgage will decide if the sale will go through at the price accepted by the seller. In a short sale, the seller owes the bank more money than the bank will get from the proceeds from the sale. With the home you are inquiring about, the seller owes about $500,000 and the homes is listed for $300,000. .
You can read about short sales here http://www.youragentgreg.com/short-sales.php. Many of them do not work out.
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