Hi guys,
Is it true that the ss has to be listed on the MLS . I never heard of this before. I know that the homeowner has to show that they can’t afford the property, but if the mortgage is upside down
whats the use?
thanks.
Jay
yes, it is my understanding that it does have to be listed. the reason is ,because, it is legitimate proof that you tried to sell it ;as required by the lender. :bobble .
Not all lenders require that you have the property listed in the MLS, but all of them would like to see it. Listing on the MLS is just another thing to prove to the lender that the property will not sell for what it owed on it and that there has been a reasonable effort put forth to sell the property PRIOR to requesting a short sale. It also creates a situation of generating potential buyers interest in the property. The bank uses the stats of your listing to help determine the status of the property. That is, if your property has been listed in the MLS for 2 years and you have never had a single offer put in, the bank is more likely to discount than if there has been several offers. They see no offers in a long period of time as representing a property that although marketed by a professional (Realtor) generates little or no interest. This could mean to the bank that they will loose more money than the SS offer because they will have holding time and holding expenses with a property that nobody is interested in.
The lender may also be satsified if the seller had listed it “for sale by owner” in order to save the commission.
OK SO THE HOME IS LISTED ON MLS OR FSBO AND AN OFFER DOES COME IN - HOW DOES THAT WORK IF THE HOMEOWNER IS UPSIDE DOWN AND A SS HAS NOT YET BEEN APPROVED?
Here is what I don’t get… if you have a contract on the property, then it can’t get listed. Yet, they still require it to be listed.
EXACTLY - SO IS IT TO SEE IF THEY CAN GET MORE MONEY?
It is to show that they tried to sell it before it was contracted. Most loss mitigators don’t really care, but it is their company’s requirements.
The PA states “Pending Short Sale Approval”
On the off chance that the contract falls through because of the buyer, it’s a good idea to still have the property listed. Just because it’s under contract doesn’t mean you can’t have it listed…at least not in Ohio. Generally speaking if you already have it under contract they wont require it to be listed if it already wasn’t.