Bank of America Wants to Control MLS Criteria for Short Sales

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:

  1. Your Bank of America short sale listing must be "marketed in the MLS" as ACTIVE until an approval letter is issued
  2. How you are to fill out your MLS fields in a general manner and specific manner

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:

Exclusively for: | Wendy Rulnick

Forward a Friend

Short Sale Customer/Agent Care
1.866.880.1232
8 a.m. - 10 p.m., Mon. - Fri., ET
9 a.m. - 5:30 p.m., Sat., ET bankofamerica.com/shortsaleagent


Short Sale Agent Update
February 11, 2013

In our continued effort to ensure acceptable and fair marketing activity for all short sales, this is a reminder that Bank of America requires all properties to be listed on the Multiple Listing Service (MLS).

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, and the property must be marketed on the MLS until a short sale approval letter is issued. Any property not listed on the MLS may experience processing delays, and/or the Short Sale file may be declined.

The following actions can help prevent processing delays and/or file declines.

  • List the property on the MLS and include all basic property detail, including: 
      
    • Number of beds/baths, square footage, lot size, year built, location, interior features, etc.
    • All known property information used to market the property to prospective buyers.
    • Alternative language such as "unknown" or "unavailable" should be used - instead of leaving fields blank - when you encounter certain property characteristics that may be unknown via public record (e.g., Property taxes, deed information, and other fees).  
       
  • Ensure the MLS remarks and/or comments do not reflect unacceptable language such as: 
      
    • "Do not disturb homeowner, property not available for viewing"
    • "Bank has already approved the short sale"
    • "Cash offers only"
    • "Preapproval through listing agent lender only"
       
  • Ensure the listing status is current and active on the MLS until a short sale approval letter is issued

Per investor guidelines, additional documents may be required and will be communicated, as applicable, by the Short Sale Specialist.

Views: 1057

Replies to This Discussion

Permalink Reply by Keji Ogunleye on February 13, 2013 at 8:29am

I contacted my state board and was  informed that this will violate the state law and NAR code of Ethics.. go figure!!!

Permalink Reply by Wendy Rulnick on February 13, 2013 at 8:32am

Keji - What state are you in?

Permalink Reply by Keji Ogunleye on February 14, 2013 at 1:58am

Maryland

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on February 14, 2013 at 6:28am

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.

Permalink Reply by Wendy Rulnick on February 14, 2013 at 8:39am

Excellent, Thom!!

Permalink Reply by Neil L. on February 28, 2013 at 10:35am

No response from them yet? this same type of rule affects us in Kentucky Too.

Permalink Reply by Kevin - Greenville, SC on March 1, 2013 at 8:43am

They did clarify a couple of weeks ago -

Update: Multiple Listing Service Requirements

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.

https://agentresources.bankofamerica.com/ss_news_13FEB11

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************