I have accepted an offer on my home subject to the bank approving a short sale. Does my agent have to list my home as pending?

Q: I have accepted an offer on my home subject to the bank approving a short sale. Does my agent have to list my home as pending?

Yes. Once there is a signed, sealed and delivered contract executed between buyer and seller, MFRMLS rules clearly indicate the status of the home's listing must be changed to "pending".

The MLS rules and regulations addresses this issue by stating:

"Contracts which are subject to approval by a court, lender or other third party must be reported as "pending" consistent with Article 4 Section 15 of these Rules."

If you are interested in buying a home subject to short sale or have a home you are wishing to sell subject to a short sale, contact me to discuss the short sale process.


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Buyers and sellers entering into a contract for a home that is subject to a short sale need to be aware that the transaction will require the seller's lender approval. The lender will have the right to approve:

• Purchase price
• Terms of the contract
• HUD statement

In the short sale process the bank or lender must agree to take a payoff from the seller that is less than is owed. This process can take time. Both parties will need to exercise patience and the lender processes the request.

If you are facing a short sale situation it is best to use the services of a full time real estate professional to assist you with the selling of your home. Give me a call at or email me to discuss your specific situation.

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- Greg Staker - 407-304-0255

When is a real estate contract not a binding contract?

When it has a short sale contingency, if you ask the individual who taught a short sale class at the local board today.

Several of our agents came back to the office with information that went contrary to the training and instruction we have provided in office. It seems that today's instructor feels that a seller who needs bank approval for short sale should still sign multiple offers, which makes the offers a valid contract, with many different buyers and then send them to the bank for final approval. At no time does the instructor caution to accept any additional offers as back up contracts.

Bottom line is that a subject to short sale is a contingency just like buyer financing or inspections are a "subject to" contingency. To enter into more than one contract is a dangerous position to place a seller.

I called the instructor to see if he had any written documentation from FREC or an attorney that changes what we know to be true with regard to contract law, he did not. I hope by now he has a clearer view of what a short sale contingency is and is not.

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- Greg Staker - Watson Realty Corp. - 407-304-0255