Why Are Bank-Owned Properties Not Updated
This is a common frustration that both customers and agents have about Bank Owned properties on the MLS. Often we will see a property on the Minnesota MLS, schedule a showing, and even write an offer, only to find out that is has been sold.
This is a function of how the banks process the paperwork for REOs (bank-owned properties). Once a purchase agreement is submitted and accepted, the bank will typically only give a verbal acceptance. During this time, the property is fundamentally sold, but not legally sold. The bank is spending time generating its own paperwork, running through its own internal processes, and eventually getting docs signed by the buyers.
Only once all paperwork is signed can the agent change the status on the MLS to pending. In some cases, I have seen this take weeks.
