In recent years, short sales have been hot topics. Often confused with a foreclosure, a short sale can be looked at as a pre-foreclosure sale. Those who are potentially facing a foreclosure are often eligible to sell their home as a short sale instead. This refers to people who are unable to afford their homes, but are also unable to sell their house for the price for its estimated value.
Different than a standard Jacksonville property sale, a short sale is a sale where a house is sold for less than the balance remaining on the mortgage. When the bank agrees, an individual can sell their home and pay off all or most of their mortgage balance without having to enter foreclosure. This is a liquidation of property debt that means relinquishing all rights to your property. For those facing foreclosure, it is a popular option. For those looking to buy a home, it is a great way to scoop up a property at a fraction of its value.
One of the leading home-mortgage agencies, Fannie Mae, announced new stipulations this month that all short sales must be listed on a Multiple Listing Service or MLS for at least five days. This means that each property must be considered an “active sale” for almost one full week—and this period must include one full weekend.
To get your home listed on a MLS listing, all you have to do is consult with your real estate specialist. After Fannie Mae announced this new stipulation, Freddie Mac, the other leading home mortgage agency, quickly adopted the new rule as well. The Federal Housing Finance Authority (FHFA) was also involved in this decision making process.
At the moment, many short sales are listed on MLS listings for as little as one hour, indicating that a buyer is often found before the listing is made public. The agencies fear that other buyers who may be on the outside of any personal associations may not have access to certain short sales since they are not listed publically, and this may mean that someone willing to pay more for a property is not granted the opportunity to do so.
If you have any questions about having your home listed on the MLS, please contact us.