Short Sales and MLS Status

[Dustin Wise]

There seems to be 2 schools of thought when it comes to short sales as it pertains to the MLS Status (Active, Backup, Pending, Closed). Specifically when the listing agent receives an offer on a short sale. However, I haven't been able to find a clear cut answer so I thought I would ask here to see how other Realtors are dealing with this.

1st Some agents are keeping the property in Active Status once they have received an offer and have submitted it to the bank. No bank approval yet so the property is still marketed as Active on the MLS.

2nd Other agents are immediately putting the property in Pending or Backup status and negotiating the first offer they receive.

I can see positives and negatives to both. Thoughts? Is there a legal and correct answer?