BrokerageIndustry News

NAR approves short-sale disclosure options for MLSs

MLSs can mandate disclosure of potential short sales

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The National Association of Realtors' board of directors has approved policies that allow for more disclosure about the potential for short-sale transactions in which lenders consider whether to allow a purchase offer that is less than the amount the seller owes on the mortgage. Colleen Badagliacco, former president of the California Association of Realtors who serves as the chairwoman for NAR's Multiple Listing Issues and Policies Committee, said today that the board decision requires that Realtor association-operated multiple listing services must give participants the ability to disclose to other participants the potential for a short sale. Prior to the rule change, many MLSs did not have the ability to disclose the potential for short sales to other MLS participants, Badagliacco said, so that buyers and cooperating brokers who are presenting purchase offers may not realize until they submit the offers that the sale is subject to lender approval. It can take weeks and eve...