Foreclosure/REO, Short Sale Properties
The MLS has added two detail codes to the “Terms/Misc” group on the Other tab within all seven property categories in FlexMLS.
The new detail codes are: “In Foreclosure/REO” and “Short Sale”. You can now add or update your listings through the Add/Change program within FlexMLS to reflect these types of properties. This is not a required entry.
It is important that “facts” about the sale be disclosed as authorized rather than any “opinions” about the possible quality of a sale or offer.
Disclosures should meet one of the following:
- A mortgage holder (usually a bank, but could be a private party) has commenced a foreclosure action relative to a property and a “summons and complaint” has been filed in court – typically in the same county as the property. This commencement of the foreclosure action can be confirmed on http://wcca.wicourts.gov/ by searching one of the names of the seller.
- A property has been through a court hearing of a confirmation of Sheriff’s Sale and the property was purchased and is now owned by the Mortgage Holder. This is commonly called Real Estate Owned (by a bank), hence the REO portion of the new detail code.
To search for “In Foreclosure/REO” properties:
Click on the “Other” Tab within a Full Search for any property type and then click on “Terms/Misc”. You will find this new detail with the other Financing details.
Definition of “Short Sale”:
For Short Sale properties, the broker is reasonably aware that funds generated at closing will be insufficient to pay recorded liens.
In addition also on the Other tab, continue to do the separate wildcard searches in the Public and the Private remarks fields to ensure that you receive all of the listings.
Click here to view the complete FlexMLS manual for searching for Foreclosed and REO properties in the FlexMLS system.