The corporate seller will have us hold any back up offer in situations where we are managing the bidding process (NOT HUD or Fannie Mae). If the accepted deal falls out, the seller may, or may not, ask for the back- up offers first. They often tell us to place the property back on the market and let all parties resubmit new offers. Unfortunately, if it is pending it means we have an accepted offer and the corporate seller is not requesting or considering any more offers.
When we have posted a listing as Active- Back Up Offers the frequent question asked is: “Noticed you are taking Backup offers. Is there still time to get one in?” Back up offers status means the seller has accepted an offer and not all documents are executed. It is our way of trying to let you know the situation has not officially pended but that there is an accepted offer.