Bank of America Clarifies Short Sale MLS Policy
Bank of America has issued a clarification bulletin to their previous email which stated all short sale listings must stay “Active” in the MLS until they are approved. Is this enough? Although they state the listing broker and the seller control the marketing, they are still implying listings that state “cash offer” only may not be approved.
Bank of America did not address points in their previous email which specified how to fill out the MLS and prohibited stating “appointment” only. What do you think?
Here is what the bulletin said:
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.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]