Does a Short Sale Need to be Listed on the MLS

[Joe Splitrock]

I have an off market deal that my agent found. To make the numbers work, it would need to be a short sale. My agent is saying before the bank will consider a short sale offer, they want to see it listed on the MLS. Seller has no money to add to the deal, so they were hoping to walk away with what they owe, but that is unlikely because the house needs work.

First question is, does it need to be listed on the MLS or is that just because an agent is involved?

Second question is, if you list a property on the MLS, do you need to list it at a price that will net the seller more than their loan pay off? For example if you owe $150K on a property, can you list it for $150K knowing that with realtors fees, you would not have enough money to close? Or is it necessary to list it at a price that will satisfy what is owed?

Assuming you do not need to list this on the MLS is there a way I can structure the deal so the bank approves it and my agent gets paid?

It is my first short sale, so any suggestions or help is appreciated. I should add that cutting my agent out is not an option, but he is willing to take very little on the deal to make it happen.