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| MLS Rule Change Looks to Ease Foreclosure Frustrations |
 
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Along with
an increase in foreclosure activity in the last few years, there has also been
an increase in frustration on the part of agents that represent buyers looking
to purchase a foreclosure property and listing agents that represent lenders
selling a foreclosed property. One
of the frustrations commonly expressed is the inordinate amount of time that
can be wasted trying to make an appointment or submit an offer on a listing
that already has a verbally accepted contract but is still waiting on the
lender’s signature before going into Pending status. When it comes to foreclosure transactions, this has created
particular issues on both the listing and selling side of the transaction. Foreclosure listing agents continue to
receive requests on a property that is no longer accepting offers and buyer’s
agents have a difficult time determining the availability of a foreclosure
property.
The HAR MLS
Advisory Group recently amended MLS Rule 2.5 in an attempt to address some of
the issues related to the process of final lender approval in foreclosure
transactions. Previously, MLS
rules required all listings to remain in Active status until the contract was
signed by the seller (lender in the case of a foreclosure). The new rule change now makes an
exception for lender-owned properties and requires foreclosure properties be
reported as Pending within five days of a verbally accepted contract if the
lender is not accepting additional offers.
2.5
Reporting Sales to Multiple: Sales
pending (including Option Pending and Pending Continue to Show) shall be
broker-loaded or filed with Multiple within five (5) days using the Status
Change Form of Multiple and showing the estimated closing/funding date and
selling broker code but the sales price shall not be shown. Listings that are lender-owned shall be
reported as sales pending within five (5) days of acceptance of a verbal offer
in cases where the lender is no longer accepting additional offers. Notice of
lease closed shall be broker-loaded or filed with Multiple within five (5) days
of lease execution (closed) using the Status Change Form of Multiple and showing
the lease price. Sales-closed
shall be broker-loaded or filed with Multiple within five (5) days of actual
closing/funding using the Status Change Form of Multiple showing the actual
closing/funding date, selling broker code and selling price and other sold
information required on the MLS profile sheets. In the event the actual
closing/funding date will occur after the estimated closing/funding date, the
Participant shall revise the estimated closing/funding date, within five (5)
days, by broker-load or use the Status Change Form of Multiple. Notices shall be filed by listing
Participant.
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