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Properties Listed MLS and The Clients Who Want To Refinance Them

Mortgage and Lending with Florida Energy and Air Services

In today's market there are plenty of people that have their homes currently listed on the MLS.  They can be first time homebuyers looking to move up, people looking to relocate and investors looking to move their inventory.  At some point they may decide to take their home off MLS to refinance to a lower rate, pull out cash or due debt consolidation.

There are a few things that these clients and Realtors can do to help the situation if they ultimately decide to take the property off MLS and refinance.

  1. First it is important they consult with a mortgage broker or loan officer prior to coming off MLS so that their expectations are realistic and they understand the ramifications of what they are looking to accomplish with the refinance.
  2. They must be made aware that the lenders that are available for what we call one day of MLS are few and far between.
  3. The shorter the time they have been off MLS the more restrictions there will be, they may not allow cash out or they may require a minimum prepay period.
  4. The client should have a long term goal.  The longer they can stay off MLS the more favorable the terms.  The lenders generally tier at 90 days, 6 months and the most favorable 12 months between the time they have had the property listed.
  5. They must continue paying their mortgage.

The client above all should have realistic expectations.  It may not be in their best interests to delist the property, there may be other solutions.   But, they may also need to take the property off MLS and bide their time until it is right for the refinance.

Above all else it is important that the Realtor and the Mortgage Broker work together to accomplish the right outcome for the client.  Lenders do not look favorably on properties that have been recently listed MLS and now the clients want to refinance.  It is not an easy process for the client to go through.  The normal turn times may be extended and exceptions may need to be gotten by the lender for the new loan.  It can be a stressful time for everyone involved.

Dominick Gaccino
Dominick gaccino - Peekskill, NY

I had this issue twice


one client didnt let me know house was on MLS


many people do not know this is an issue in many lenders eyes


most want it off MLS anywhere from 3-6 months before they will touch it



Jul 09, 2007 12:58 PM
Marie Wright
Florida Energy and Air Services - Clearwater, FL
Dominick - Graet comment.  That's why I wrote it, most people don't think it is an issue and it is.  I had it happen to me twice also.  Clients act like why should that matter?  that's nobody's business.  But it is you are asking for money to be lent to you and the Lender is suspect when the house has been listed. 
Jul 09, 2007 01:10 PM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal
I heard of that happening before.  It does seem strange but I'm sure there is a good reason for it.
Jul 09, 2007 02:50 PM
Marie Wright
Florida Energy and Air Services - Clearwater, FL
Tim - thanks for your comment.  The lenders make it difficult because they believe that the owner must be in some sort of distress and they are looking to keep their exposure to a minimum.
Jul 10, 2007 12:24 AM