With the growing number of short sale listings in our MLS there we are seeing the status “active contingent” more frequently. When you see the status “active contingent” on a listing it is a short sale with an offer submitting and waiting for bank acceptance or approval. This process can often take a long time and they do tend to fall through periodically. Depending on where the offer is in the process it may be worthwhile to view the property if it is high on your list of properties to see.
Typically the bank just reviews one offer and either accepts or counters it, at which point the buyer will move forward with the purchase or the property will become available again. Financing terms are not usually too big of a factor in a short sale. Some of the differences with short sale transactions are usually long response times from banks regarding acceptance of an offer, and seller’s don’t have funds to contribute towards closing costs or repairs, therefore, some additional costs could be put on the buyer. Once there is bank acceptance, the transaction is handled like most other standard sales, inspection contingencies, financing and appraisal contingencies and average 30-40 day escrow to close.
Also see our page on Short Sales for more information.