Is Your Local MLS behind the 8 Ball When Dealing with Short Sales?
July 16th, 2009 categories: For Buyers, Short Sales
Is your local MLS behind the eight(8) ball when it comes to Short Sales?
Mine is and here is why!!
According to my local MLS, all signed contract between buyer and seller must be shown as “Under Contract”.
Here is the problem. Short Sales are not your typical sales between buyer and seller.
Short Sales are contingent upon the “Approval” from a third party “The Bank”. This “Approval” can often take between 3 -4 months.
So what does this mean for the Seller. It means taking the property off the market for 3-4 months, getting fewer showings and this can affect the outcome of a Short Sale.
In my opinion I think my MLS board is behind the 8 ball when it comes to understanding how Short Sales work. In Short Sales your orginal buyer often is not your final buyer but if you take it off the market in order to comply with the board rules you are missing crucial marketing time for the property.
I wish the MLS would change the rules or modify the rules when dealing with Short Sales because as a Listing broker my fudiciary relationhip is with the Seller, not the bank. And as a Listing Broker I want the bank to approve a short sale for my seller.
Jack,
You raise a good point. We have the same issues we are dealing with in the Phoenix area. From my view, if the banks could provide their approval in a reasonable timeframe, 2-3 weeks, everything would balance out fine. In my opinion, the banks’ system is at fault and puts everyone, including themselves, at greater risk.
However, the chances of them doing anything differently appear slim to none. Therefore, if realtors continue to fully disclose the nature of the way this business is being handled, I believe they are covering their fiduciary responsibilities.
From a selling agent point of view,it’s bad enough to have to wait 2-3 months for a response, but it would be worse if they could not get a committment for the sale by a signed contract with the seller up front.