MLS updates “Special Conditions of Sale” descriptors

Our local MLS, the Northern Nevada Regional MLS, is changing the descriptors that can be specified in a listing’s “Special Conditions of Sale” field.  As background info, the current values include:

• None
• Bank Owned
• Short Sale
• Yes-Other

and the less frequently used…

• Subject to Court Approval
• Relocation

Though these fields seem self-explanatory, in the past there has been confusion regarding how to classify Fannie Mae and Freddie Mac foreclosures.  Initially, many listing agents would list these REOs as “bank owned”.  However, Freddie Mac issued a bulletin stating that their listings could not be categorized as “bank owned”, as the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is not legally regarded as a bank, but a corporation. […or, public government sponsored enterprise (GSE), according to Wikipedia.]

So, agents had to list these properties under “Yes-Other”.  However, in doing so, statistical report for REO listings became more difficult.  Add to that, HUD listings have also traditionally been categorized as “Yes-Other”.   Therefore searching for, and isolating only HUD properties has not been a simple process.

The fix?  Going forward, the descriptor formerly known as “Bank Owned” will be renamed to “REO”.  All foreclosures, including Freddie Mac-owned properties will be moved into this category.   Additionally, a new category, named “HUD”, will be created specifically for HUD properties.  All HUD homes currently under “Other” will be moved into this new category.

To recap, going forward, the new descriptors for the Special Conditions of Sale will include:

• None
• REO
• Short Sale
• HUD
• Other
• Subject to Court Approval
• Relocation