When does a property status get changed to pending/contingent?

[UCGal]

Just curious here.

I have 2 coworkers/friends who have offers submitted on short sales. One has been negotiated and my friend accepted the counter offer from the seller. The seller’s realtor has gathered all my friends financial data (pre-approval letters, etc) to input into some bank computer. The offer has been submitted to the bank. I was under the impression that this would be “contingent” at this point. My friend is a little worried because the house schedule for trustee sale very soon. It shows as active on the MLS.

Another friend is in a similar situation. Short sale seller has accepted their offer – and submitted it to the bank – but it still shows as active on the MLS. She’s not as worried, no imminent trustee sale on the horizon…

Is it typical for realtors to keep the status active, even though the seller has accepted an offer?

(On a side note – the market is finally at a point where it seems like a lot of friends are buying either homes in move up neighborhoods or investment properties… at least among my friends.)

[SD Realtor]

Standard practice varies among realtors which kind of sucks. My preference would be for all realtors to move it into contingent when the seller accepts and into pending when the lender accepts. This is all within the context of short sales.

As you know the status on the MLS has no bearing on the trustee sale process. You may want to advise your friend to ask their agent to call the listing agent and ask the listing agent to make sure the negotiator working the short sale has contacted the legal department so that they can call the trustee to postpone the trustee sale. (I know that was a long chain but you can follow those well)

Alot of realtors will keep it active during the short sale review process because so many buyers flake on short sales and walk away.

[sdrealtor]

Exactly. Alot of agents keep short sales active because they want back up offers. Even though they have accepted and submitted one to the lender its a safeguard measure that i have done myself on occassion.

[UCGal]

Thanks SD R and sdr.

He has already asked the listing agent to notify the legal department. All non-bank parties are well aware of the trustee sale date.

No other offers have come in that he knows of… but not sure how he’d know.

The seller seems anxious to have the short sale complete and avoid foreclosure.

[sdrealtor]

As long as his offer was the one submitted he should be fine. That is the key in a short sale. Once an offer is submitted its a real pain to switch buyers and most agents wouldnt unless the buyer walked.

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