Tuesday, July 31, 2012

Sacramento's Metrolist MLS introduces a new home listing status -- Pending Short Lender Approval, aka, PSLA...

As of today, the local Metrolist MLS that Sacramento real estate agents use to list property for sale, has introduced a new status known as “Pending Short Lender Approval”, aka PSLA. This status has been introduced to distinguish listings where offers have been accepted by seller only, and NO additional offers are sought while awaiting short sale lender approval.

The status "Active Short Contingent", aka ASC, is still in use. It is essentially both an active status and a pending status...it still means that the seller has accepted an offer ans submitted it to the lender for short sale approval, however they are still showing the house and will entertain additional offers.

Clear as mud right? Realistically -- there will be a period of transition while Sacramento agents, buyers and sellers all get used to the existence of this new status.

What does this mean for Sacramento short sale sellers -- Under the Pending Short Lender Approval status, your property will not be shown anymore. While the vast majority of short sale lenders are only set-up to review, analyze and consider one offer from one buyer at a time for a short sale on your property, I hesitate to recommend to my sellers that they change the status of their home to PSLA. In order to make sure you deal in good faith with your short sale lenders, you really should get their consent to stop showing the property. I highly doubt any short sale lender will give you written permission to stop showing a house. Also, the ramifications of not showing your listing anymore - if the buyer in contract walks away, then you have to start from marketing the house from scratch and find a new buyer, rather than having potential back-up prospects waiting in the wings.

Keep in mind Sacramento short sale buyers -- ASC listings are still in contract with other buyers. Don't get too excited about viewing them, making offers on them, or realistically making an offer that will usurp another buyer's offer.

Still clear as mud...

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