Unfortunately, due to market conditions, there are a number of distressed properties on the market. A distressed property is a home that is underwater (short sales); pending foreclosure; or has been foreclosed and is lender owned. Each of these distressed property types has distinct legal and financial obligations which impact the sale of the property.
As a listing agent, you want to be able to accurately describe your distressed property and you want buyers to be able to find these properties. Distressed property information in Keystone is located in different sections within Keystone. Currently, there is a yes/no field for Potential Short Sales and Foreclosure, and the listing agent has to go to the Current Financing picklist to find REO and another entry for foreclosure. Under this set up, a customer needs to look at all of these options to find the properties in Matrix. Conversely, the customer needs to eliminate all of these properties if their buyer was not interested in a distressed property.
We are working on providing a consistent, more accurate method for entering data and for searching for properties that meet this market problem as well as a consistent definition of the distressed property types. After reading your comments on our blog and talking to agents from all areas that specialize in distressed listings, we’ve come up with the following solution. We are creating a new field titled “Transaction Type”. This field will include the options of Standard Sale, Short Sale, Foreclosure, REO, and Undisclosed/Other. It will be a single select field in Keystone. This means you can only have one option selected. It will be a multi-select field in Matrix, meaning you can search for listings that are EITHER Short Sale or Foreclosure or REO and display the results in one column that differentiates each step in the process.
Definitions of Transaction Types
1. Standard sale refers to a property which is available for sale without third-party involvement or approval.
2. Potential Short Sale refers to any property that is underwater and the sale is subject to bank approval.
3. Foreclosure refers to a property that is subject to foreclosure proceedings. Until the foreclosure proceedings are finalized, the seller still owns the property.
4. REO (Real Estate Owned) properties are bank or lender owned.
5. Other/Undisclosed should be selected when you do not have your seller’s permission to disclose the property as a distressed sale.
We hope that this new field will clear up any confusion around entering distressed properties. If you have questions, please comment below.
Stay tuned for the official release next week!