Bank of America sent an update email to clear confusion on short sale procedures. A previous email dictated that Subscribers must keep listings Active until a short sale approval letter is issued, which contradicts MLS rules in many scenarios. The clarification email from Bank of America has been posted below:
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 (ARMLS note: read the original Feb. 11 message here).
• 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 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 remains on the MLS until an approval letter is issued will help you show that the property was on the open market.
• 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”. 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.
If you have questions, first contact your short sale specialist (or closing officer) through Equator messaging. If there’s no response after two days, escalate to the team lead. For urgent needs (such as a foreclosure postponement) or for escalation beyond the team lead, contact Short Sale Customer/Agent Care at 1.866.880.1232.
Visit the Agent Resource Center at bankofamerica.com/shortsaleagent for educational guides, news and resources to help agents complete a short sale at Bank of America.