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questions about short sales and foreclosurfe

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When is a property that is available for sale not really available for Sale?  How about when is a property under contract but not really under contract?  Answers to these riddles are coming up soon…

Metrolist, Denver’s MLS (Multiple Listing Service), answered a call for a change to the system Realtors use from some confusing status options as we saw an increase in short sales and foreclosures properties.  Last year when a property was being offered as a short sale

…A short sale is when a mortgage loan is or may be facing foreclosure and the owner is trying to get an offer to take to theColorado Foreclosures bank to have them accept short of what is owed…

there was a lack of uniformity for how to handle these when marketing the houses for sale.  When a short sale is being processed the bank is reviewing an offer for acceptance (typically that has taken between 30-90+ days) so while that is being reviewed the house is in a limbo state where it isn’t necessarily under contract (the contracts are contingent on the bank accepting the offer) and it’s not exactly available since there is a contract running on the house.  Last year this was handled by language written into the super secret section of the MLS where only the brokers can see whether or not there was an offer being reviewed.

That system lent itself to errors and slow recording new information.  This year Metrolist developed a new status called “Pending”.  This indicates whether or not a bank is reviewing a contract and that it does have someone who has essentially ‘first dibs’.  The new confusion is that when people are searching for homes for sale in the Metro Denver area they will often see properties in the ‘available’ section that are in fact ‘Pending’.  Many websites are not able to differentiate between the ACTIVE and the PENDING properties so they all show as ACTIVE.  It’s frustrating – although it is the best of the worst options and will be corrected with a new fix before too much longer I imagine.  When searching for homes for sale in the Metro Denver area have you come across this scenario?

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