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House listed for 174K. I offered 167K and buyer pay all closing cost. Multiple offers. Bank did not take my offer. I continued looking for a house and came across the same one that the bank did not take my offer but next to the listing is the word CONTINGENT. What does this mean?

3 Thoughts on Mortgage offer: CONTINGENT?
  1. Reply
    senior2tor
    February 8, 2014 at 2:16 pm

    The are waiting on an offer of 168 K to see if it goes through. IE new mortgage. If not then they will hold yours contingent on you getting some mo-nay too.

  2. Reply
    Dawni Do Right
    February 8, 2014 at 2:38 pm

    In my MLS, the listing flag or status of “contingent” or “ctg” refers to a listing that has an offer that is signed around, but the buyer needs to sell their home in order to complete the purchase on this new home.

    There is often what is called a “Bump Clause” in the Contingent on Buyer’s Home Addendum, meaning that if another acceptable offers is presented to the Seller, they can accept this 2nd or additional offer and then the 2nd Selling Agent must serve the 1st Selling Agent with a “Bump Notice”.

    Said Bump Notice informs the 1st Selling Agent & the 1st Buyer that they have “x” amount of days (typically 3 – 7 days in my area) to either waive their contingency or enter into a purchase & sale agreement with a Buyer on the home they need to sell. Sometimes, this can be done with the use of a “Bridge Loan”. (short term loan for amount of funds needed from current home to complete purchase on new home ~ paid off when current home sells. Similar to a line of credit or equity loan, but funds are used only to purchase a home)

    If nothing happens & a “Bump Reply” is not received, or the 1st Buyer is not able to waive their contingency, the 1st offer is voidable & the Seller can make the 2nd offer take 1st position.

  3. Reply
    godged
    February 8, 2014 at 3:19 pm

    There is an offer that is accepted, but it is contigent on certain conditions being met.

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