UPDATE: 2/13/13 - The Florida Association of Realtors said Bank of America will be issuing a "clarification email".
The recent Bank of America agent update that was emailed out today states:
Many MLS rules and even some State laws disallow keeping short sales "active" after the seller has accepted an offer. In Florida, the Florida Association of Realtors legal department states "a short sale contract is still a contract". In fact, my local MLS. the Emerald Coast Association of Realtors in Florida, states that even short sale properties that have "offers" (unsigned by the seller), that were sent to the short sale lender, must be removed from "active" MLS status, and placed into "pending" or "contingent" status.
When I initially read the email I thought it was accidentally sent to short sale agents instead of REO agents. I was mistaken. I think this latest effort by Bank of America is overstepping. Certainly, there are valid points, such as, it is wise not to state a short sale is "pre-approved". But the email edict seems to also be micro-managing short sale agents and potentially is contrary to some State laws and MLS rules. The property is still owned by the seller. Third party "approval" does not equal "seller" status.
Here is the body of the email from Bank of America:
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I contacted my state board and was informed that this will violate the state law and NAR code of Ethics.. go figure!!!
Keji - What state are you in?
Maryland
Our MLS and AOR is responding to BofA. We just received this communique from our MLS Provider...
Bank of America Short Sales and Listing Status;
California Regional MLS is aware that you may have been contacted by Bank of America and instructed to leave your short sale listing’s status set to Active until the short sale has been approved by Bank of America. Please remember that Section 10.2 of the CARETS Standardized Rules and Regulations* states that listings with accepted offers shall be reported to the MLS or input into the MLS database as “pending” or “back-up” within 2 business days of the acceptance by the listing broker. Failure to update your listing’s status will result in a listing status violation.
California Regional MLS, along with many MLSs across the nation, have contacted Bank of America regarding Bank of America’s requirement being a direct violation of MLS rules. We expect that Bank of America will be issuing further clarification on its instructions before the end of the week.
Excellent, Thom!!
No response from them yet? this same type of rule affects us in Kentucky Too.
They did clarify a couple of weeks ago -
2/14/2013
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.
In our continued effort to ensure fair marketing activity for all short sales, Bank of America requires all properties to be listed on the Multiple Listing Service (MLS). 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 following information provides clarity on the Multiple Listing Service Requirements to help you avoid delays on your short sale:
The property must have been listed prior to the acceptance of an offer. All offers must be submitted by the buyer subsequent to the listing date. Any property not listed on the MLS may experience processing delays, and/or the Short Sale file may be declined depending on the specific situation.
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 was properly represented and marketed on the MLS will help you show that the property was on the open market.
The following actions can help prevent processing delays and/or file declines:
List the property on the MLS and include all basic property detail.
Ensure the MLS remarks and/or comments reflect acceptable language. 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” as 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.
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