Wayne Brooks - Good catch. The email from the attorneys mentioned that I could not submit an offer, but reading over the FNMA memo that was released, you are correct. An offer can be submitted any time, but the listing must remain active until the 5 days + 1 weekend.
I pasted in the rule below.
Short sale listings must have five days in MLS
WASHINGTON – July 9, 2013 – Fannie Mae recently announced requirements for Fannie Mae short sales listed
in a multiple listing service (MLS). Starting August 1st, each new short sale listing must maintain an "active" status
for a minimum of five days; and that timeframe must include at least one weekend. Freddie Mac announced similar
guidance for Freddie Mac short sales.
“Along with our regulator, the Federal Housing Finance Authority (FHFA), we decided to take this step in response
to Realtors’ concerns,” says Jane Severn, director of marketing at Fannie Mae. “We’ve had cases where a short
sale property is listed in the MLS as ‘active' and, in less than an hour, it goes into ‘pending' status."
Florida Realtors’ Vice President and General Counsel Margy Grant says the requirement will change the way
some members list a home in their MLS.
“Realtors should identify any short-sale listings that would require approval by Fannie Mae or Freddie Mac,” Grant
says. "If the new rules apply to a listing added to the MLS after Aug. 1, we recommend that agents put a disclaimer
in MLS comments telling cooperating brokers that the seller must keep the listing active for five days, including a
weekend. This disclaimer would allow cooperating agents to structure their offers accordingly.”
Grant says it’s important to remember two things: that the new rule only affects Fannie Mae and Freddie Mac short
sales; and, though it directly affects sellers, it also indirectly impacts buyers’ offers.
“The rule doesn’t regulate the timing of an offer,” she says. “An offer can be submitted at any time – but a seller
following these rules cannot accept any offer until the required five-day marketing period ends. A buyer’s agent
could, for example, submit an offer on the first day a home is listed. However, they may want to include contract
wording that gives the seller five days to accept the offer if the property must follow Fannie Mae or Freddie Mac’s
rules.”
Severn says Fannie Mae wants their “short sale listings to be marketed in a manner that allows the market to see
the listing." She notes that their current policy for properties Fannie Mae owns (REO listings) reflects the same
philosophy since Fannie Mae won't evaluate offers until the listing has been in the MLS and "active" for at least
three days.
Under Fannie Mae and Freddie Mac's rules, the short sale property must be listed in an MLS that covers its
geographic area, and a printed copy of the property's MLS listing must be kept on file. If a property is located in an
area not covered by an MLS, it must be advertised in a manner customary for the same period of time – at least
five consecutive calendar days that includes one weekend.
Fannie Mae announced the change in a Servicing Guide announcement in June, applicable to “Multiple Listing
Service Requirements for Standard Short Sale/HAFA II.” The Servicing Guide is published on Fannie Mae’s
website.
