Do you ever wonder why a short sale listing will continue to show as "for sale" on the website even though it's under contract?
This announcement went out to the members of the Miami Association of Realtors this morning:
A message went out to Equator agents from Bank of America with a direction that all short sale listings should remain “Active” until the short sale approval letter was issued. This letter is not usually issued until right before closing, long after a contract is executed by the buyer and the seller.
Concerns and questions immediately began flowing into the legal hotline from members who were worried about violating MLS rules. Florida Realtors contacted BofA and explained that there was a misunderstanding as this direction was not consistent with MLS rules. BofA was extremely diligent in listening to our concerns and issued the clarification below.
The following information is to revise and provide additional clarity on the Multiple Listing Service (MLS) Requirements message that was sent on Feb. 11, 2013.
- Listing the property on the MLS is not a new requirement in the short sale process and has always been a component of our fraud review.
- The listing requirement demonstrates that the property was listed on the open market and the offer received represents an open market transaction. We recognize that listing status classifications may differ by locale and are subject to local or regional MLS requirements. Brokers should follow MLS requirements at all times. MLS statuses such as Back Up, Contingent or Pending may be acceptable. Ensuring that the listing remains on the MLS until an approval letter is issued will help you show that the property was on the open market.
- How the property is marketed is a decision determined by the Seller and Listing Agent, however, caution should be exercised in using terms like "cash offers only"or "property is ineligible for financing". This kind of verbiage can be considered an attempt to exclude a financed buyer and lead to a delay in processing the short sale. All offers are subject to investor approval and are reviewed on a case by case basis.
Want to get the latest accurate information on the market? Contact Chris Ballard 305-424-8775