Short Sales in MLS

We the undersigned wish to express our thoughts as customers of MLS PIN, regarding an issue of concern.

It is important to note that this commentary is in no way, shape or form directed to or about any particular real estate firm or property, but is rather a global commentary on how we can all work in the best interests of our clients and customers, and in full compliance with all ethical and legal guidelines and responsibilities.

This involves the inclusion in the MLS database of "short sale" properties. These properties are those, which are being offered at a listing price that will not satisfy the current mortgage obligations of the Seller. In such cases, these sellers are "upside down" on the properties, owing far more in mortgage debt than the properties are actually worth. In some cases, the lender has already agreed to accept a lower amount as "full payment" of the debt, and we have no issue with these properties whatsoever.

In most cases, however, these properties are being put into the MLS database at a particular "listing price" that nobody has agreed to accept.

This is having a negative effect in several ways:

First and foremost, this could be construed as deceptive to a consumer. The property is being advertised at $X, and yet a Buyer Client, willing to pay "full price" for the property, is still in no way assured that he/she can purchase it at that price. Rather the client submitting an offer is told that it will be "presented to the lender" for consideration, which begins a process that could take months, with no guaranty whatsoever of a positive response, or even any response at all.

Secondly, this is impacting the public view of other properties in the same marketplace, by creating an "invalid data point" of a price that simply does not exist, and hurting the other sellers who are also ultimately the consumers of MLSPIN, and who are trying to sell their property at fair market value.

Lastly, these listings are being put into MLS with a particular offer of compensation, and then including a disclaimer, indicating that "payment of compensation is subject to lender approval." Clearly this is in direct violation of existing MLSPIN rules and regulations. Once compensation is offered by the listing agent, it is the responsibility of the listing agent that it be paid, not subject to later determination by an outside third party.

This problem would be resolved by a simple regulation that, on the surface, seems to be incredibly logical namely that in order to put something in MLS at price x a consumer has to be able to actually purchase it at price x with a full discharge of all of the sellers obligations. If a property is going to be sold as a "short sale" then the agent would need to get written authorization in advance from the lender that "price x" will be acceptable, before entering it into the system.


We would respectfully request that the Rules and Regulations Committee of MLSPIN take up these matters, and in consideration of the opinions of the agents, take whatever action they deem appropriate in their judgement.

Please note that while this page was created using an online "petition" website merely for the ease of collecting opinions from agents, this is NOT really a "petition" which carries a negative connotation, but more just an electronic collection of general opinions. It is in not meant in any negative way, shape or form towards the wonderful staff of MLSPIN who we all fully believe concur on the above positions.