Question
What does it mean when a short sale home is "contingent" or "under contract-contingent"?
We already own a home... but with the real estate market being what it is right now we are "looking" at possibly renting our home out, and buying another home- since its a buyers market right now. We found a home, but its says its "contingent" on one site and says "under contract contingent" on the other site. Does that mean this home is off the market?
2 years ago - 5 answersBest Answer
Chosen by Asker
Contingent means that the seller has accepted a contract on the property. This means that if everything in the contract goes through (home inspection, lender approval, appraisal, etc.) as planned, then the sale will be completed. If the status is "with kickout" it means that they are still accepting offers, and if you make a significantly better offer, they will likely accept. If it say "no kickout" then they are no longer accepting offers, regardless of whether you want to offer more.
In a short sale, a house could be under contract for 6-12 months and at the last minute fall through and go back on the market because the bank does not approve the sale in time. It actually happens a lot, but if you were to wait, it could take months or even a year to see it back up again. I would suggest looking for other properties in the area.
Source(s):
Mom is realestate agent
2 years ago
Other Answers
It was sold, contingent on the bank accepting the offer. They can take over 6 months to get to it.
by Janet P - 2 years agoContingent means depend upon. It means that it is under offer and waiting for something, hence contingent, before it can go through.
by MadMan - 2 years agoThis means the property you would want to purchase or is looking at is currently under a sales contract with a few things needed to complete the sales contract. The contingent might be that the buyer would qualify for and be approved for a mortgage loan with a recognized lender.
In some cases you might be able to submit and offer to purchase the same property. Your offer would be considered a back up offer. In the event the current offer fall through or the buyer can not satisfy certain conditions then your offer would become the primary offer. This is done through the real estate industry.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
In my market, instead of using "under contract contingent" (which I haven't heard before) we use "pending lender approval" for short sale transactions in process. The home remains on the market for sale until the day of closing, since lenders have the stipulation that the sellers need to continue trying to find buyers who will pay more for the house, which may lessen the bank's monetary loss by doing a short sale.
Sellers (owners in distress) accept offers, but it depends on the lender if the offer is acceptable enough to close. Until the transaction closes, the house will be "for sale pending approval" or "for sale under contract-contingent."
Source(s)
Real estate agent and short sale/foreclosure expert specializing in foreclosure prevention.
by Commentator1981 - 2 years ago