Short Sale Policy
Short sales of residential properties involve property where the amount owed against the property exceeds the market value. In situations where neither the seller or the buyer of the property can produce the difference between sales price and loan amount(s) in cash, consummation of the sale requires some degree of debt forgiveness or work out between the seller and the first, and if applicable, the second lien holder. The proliferation of short sales in the Valley is a byproduct of the decline of property values as a result of the collapse of the overall real estate market.
Previously short sales were rare. Today the number of short sale eligible property is growing, and brings with it issues and challenges to handling these properties in MLS. The ARMLS® Short Sale Policy addresses short sales in flexmls in a question and answer format. Compensation, status in MLS, list price requirements, special listing conditions, etc. are addressed in the policy. Violations of the ARMLS® Short Sales Policy are subject to the ARMLS Penalty Policy.