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kristin_c

yet another "is this usual" thread (from the buyer's perspective)

kristin_c
10 years ago

The house hunt continues, of course. Last weekend we fell in love with one and tried to make an offer right away, only to find out that *while* we were actually in the house falling in love with it, the sellers were accepting another offer. Or that was our impression at the time. We did put in a backup offer because it's a short sale and who knows what can happen with those

Three days later the house is still active on MLS and when I call my RE agent to ask about it, she says the exact words used were that there is "a mutual agreement". She really doesn't sound happy that the house is still on MLS after she was told we couldn't submit an offer and is investigating now.

My question is: what exactly is this "mutual agreement" nonsense? My inclination would be to ask, so did they submit a real offer with earnest money like we are prepared to, or did they not, and if they did not, then why the heck isn't the listing agent doing (what I am under the impression is) their job and taking a real offer? I mean I am a rank and green housebuying newb, but I would never have dreamed of expecting a "mutual agreement" without a real offer to give me an exclusive option on a house.

Is "mutual agreement" a thing or is this as strange as it sounds to me? Am I wrong and the listing agent/sellers are NOT being strange? Granted, I have something invested because we were crushed to hear we had missed out on this house, but I feel like I need to know whether I can expect this kind of strange ambiguity over other houses in future.

Comments (12)

  • kirkhall
    10 years ago

    That is certainly not usual. However, if you don't want your heart crushed, you might need to not look at short sales. All kinds of weird things can happen with short sales (and very LOOONG drawn out things too). Keep your offer on the table, and make your agent work. I'm sure she'll get to the bottom of it as best she can.

  • sylviatexas1
    10 years ago

    My understanding and my experience has been that the MLS status is changed as soon as the seller signs on the dotted line, & the listing agent often changes the narrative or description to include something like "executed contract has been submitted to lender, back-up offers welcome".

    As for "mutual agreement", there's no such thing as sort-of a contract due to mutual agreement;
    it either is or it isn't.

    I think I'd want to know what's up, too, but I don't think it'll help you;
    probably time to kick the dust off your shoes & find something that's out there waiting for you, or getting ready for you, *& be ready to pounce on it when it appears*.

    Have your loan approval.
    Have your proof of funds.
    Check the MLS as often as you and/or your agent can.

    I wish you the best.

  • artemis78
    10 years ago

    Since this is a short sale, I'm betting this means the buyer and seller have agreed on a price, but the lender has not formally approved it yet. In our area, these homes usually go pending with a note that lender approval is still needed, but in some regions I can imagine they might stay active. Sometimes the houses in our area come back on the market at higher prices if the lender rejects the original offer--much to everyone's confusion/frustration. Good luck--the advice above sounds good as you sort it out!

  • ncrealestateguy
    10 years ago

    I think Artemis78 has it right. The sellers have signed a contract with each other, but it has to be approved and then signed off by the bank. Therefore it is a conditional contract right now. Per our MLS rules, the MLS needs to be changed from Active to Under Contract/Continue To Show. I would imagine that this MLS has similar rules that this agent is not following.

  • southerncanuck
    10 years ago

    If it is a conditional sale isn't a buyers agent given an opportunity to make an offer without conditions?

    Certainly the norm here. I have often had an offer with conditions and then receive an offer without any, and accepted it after the buyers with the conditional offer are given an opportunity to match or better the offer.

  • kirkhall
    10 years ago

    SC--short sales are a "whole 'nother ballgame" when it comes to "conditions". It may not be that the buyer nor the seller have any conditions... but the BANK has a bunch... Even if the bank doesn't have any conditions, it can take a while for the bank to "move" on a particular piece of paper or document.

  • kristin_c
    Original Author
    10 years ago

    No, I do know for a fact that around here, an offer on a short sale that is accepted by the seller but waiting for their lender to accept is "pending" or "pending short sale".

    We never did find out what exactly was up. My agent called the listing agent, the listing agent said that the listing should have been changed to "pending", and hours later it was. Because I am a cynical and cranky wench, my suspicion is that perhaps the listing agent brought in a buyer, and wanting both seller and buyer commissions clogged up the tubes for 12 hours or so with this "mutual agreement" crap until his/her buyer was able to rustle up a real offer.

    As someone said, though, it's not like we could do anything about it even if that were true, so onward.

    (BTW we understand the pitfalls inherent in the short sale system, but since our budget is quite low, we'd rather deal with the pitfalls than eliminate that entire pool prospective houses. And it is a large pool; lots of short sales around here.)

  • kirkhall
    10 years ago

    Good for you. I am sure something will turn up. My friend stuck out the SS system and found a wonderful house they wouldn't have been able to buy except it was a SS. I wish the best for you too! And, at least now, it doesn't seem like it is taking banks forever and a year to get back to you about offers...

  • Tmnca
    10 years ago

    With short sales, the seller doesn't really get to accept the offer. They collect them up and submit to the bank who gets to decide. We gave up on short sales - most of the sellers in a short sale situation don't actually want to sell their home and seem to actively be trying to stop the process.

  • kristin_c
    Original Author
    10 years ago

    It may be different in your area but as it was explained to me, here at least, the offer on a SS goes to the seller. The seller signs off on it/accepts it, and it goes to the seller's lender and then *they* have to accept it too. So if the seller has signed off on an offer, the property will show as pending while the bank spins it wheels getting the red tape done.

  • ncrealestateguy
    10 years ago

    Tinan,
    Sellers do not send offers to the lender... they can only send CONTRACTS to the lender.
    SouthernCanuck, this is why your scenario can not happen. The seller can not be under contract with more than one seller at a time, unless it is a back up contract.

  • oklahomarose
    10 years ago

    Don't completely give up on short sales; they can work out. It is best if you don't short sale your primary residence, though. I imagine that would be pretty stressful. I've only gone through the process for investment property. My "seller" received multiple offers. Mine was chosen. We signed a contract. The contract went to the lender. After several months, the lender rejected it. Multiple backs and forth after that and eventually I got my property.