BofA revises short sale update
On Feb. 11, Bank of America issued a Short Sale Agent Update stating that the listing status of properties on the MLS should be “current and active” until a short sale approval letter has been issued.
C.A.R. Legal reviewed the Update and alerted Bank of America that keeping listing status as “active” after an offer has been accepted by the seller and forwarded to the lender is not only a violation of MLS rules, but would convey a false representation of the property’s actual status. Instead, the status should read “back up,” “contingent,” “pending” or another field along that line.
Bank of America recognized this error and issued a correction on Feb. 14 stating that it understands that listing status classifications may differ by locale and are subject to local or regional MLS requirements. Additionally, the Feb. 14 Alert says that brokers should follow MLS requirements at all times, and 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 real estate agents show that the property was marketed on the open market.
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