Comments on: Avoiding Short Sales? http://faarforum.com/2009/02/avoiding-short-sales/ Fredericksburg Area Association of REALTORS® Fri, 04 May 2012 21:02:19 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Matthew Rathbun http://faarforum.com/2009/02/avoiding-short-sales/comment-page-1/#comment-147 Matthew Rathbun Thu, 26 Feb 2009 10:34:31 +0000 http://faarforum.com/?p=234#comment-147 The MRIS rules did say that the Listing Agent must disclose, however the revised regulations specify that the disclosure is only required where it isn't other prohibited by law. Virginia considers the pursuit of a short-sale to be a financial issue and this it is confidential - always. The Seller is never compelled to disclosure that they are looking into a short sale - ever. The listing agent MUST keep that information confidential, unless the Seller has directed otherwise. (I don't agree with the rule, but it's the rule non-the-less) Because I've had this conversation so many time, I know that you can find this requirement to hold it confidential in 54.1-2131. I've also had conversations with VAR's legal counsel to confirm. VAR's counsel is a primary reason why MRIS had to modify their policy. Evidentially, Maryland and DC (other areas served by MLS, do not consider it confidential. You can read more on this matter here: http://faarforum.com/2008/07/mris-short-sales-commissions-disclosures-and-you/ The bottom line is that without the Seller's consent, the pursuit of the shortsale or consideration of one is taken to the Listing Agent's grave; unless the Seller feels compelled to give up the legal protection. We have more lengthy conversations and ways for Buyer Agents to investigate and flush this out in our Short Sale classes at RECA. Regardless if it is disclosed as a short sale, or not; the Buyer Agents should approach almost every non-REO listing as a potential Shortsale, in this market. Be careful when using that MRIS complaint feature. Filing a false complaint, could backfire on you! The MRIS rules did say that the Listing Agent must disclose, however the revised regulations specify that the disclosure is only required where it isn’t other prohibited by law.

Virginia considers the pursuit of a short-sale to be a financial issue and this it is confidential – always. The Seller is never compelled to disclosure that they are looking into a short sale – ever. The listing agent MUST keep that information confidential, unless the Seller has directed otherwise. (I don’t agree with the rule, but it’s the rule non-the-less)

Because I’ve had this conversation so many time, I know that you can find this requirement to hold it confidential in 54.1-2131. I’ve also had conversations with VAR’s legal counsel to confirm. VAR’s counsel is a primary reason why MRIS had to modify their policy. Evidentially, Maryland and DC (other areas served by MLS, do not consider it confidential.

You can read more on this matter here: http://faarforum.com/2008/07/mris-short-sales-commissions-disclosures-and-you/

The bottom line is that without the Seller’s consent, the pursuit of the shortsale or consideration of one is taken to the Listing Agent’s grave; unless the Seller feels compelled to give up the legal protection.

We have more lengthy conversations and ways for Buyer Agents to investigate and flush this out in our Short Sale classes at RECA. Regardless if it is disclosed as a short sale, or not; the Buyer Agents should approach almost every non-REO listing as a potential Shortsale, in this market.

Be careful when using that MRIS complaint feature. Filing a false complaint, could backfire on you!

]]> By: Kate Elim http://faarforum.com/2009/02/avoiding-short-sales/comment-page-1/#comment-146 Kate Elim Wed, 25 Feb 2009 15:50:14 +0000 http://faarforum.com/?p=234#comment-146 One phone call to the listing agent should take care of that. If not, there's always that wonderful form that we can fill out dealing with MRIS infractions. One phone call to the listing agent should take care of that. If not, there’s always that wonderful form that we can fill out dealing with MRIS infractions.

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