Mortgage Definition: Recently Listed
Recently Listed — A Simple Definition:
“Recently listed” refers to the situation where someone may have had their property listed for sale, the property didn’t sell and now are trying to refinance the property. Lenders have guidelines regarding recently listed properties – and each lender will have different (but similar) guidelines about recently listed properties.
Recently Listed— An Expanded Definition:
Many people who try to sell their home decide at some point to take their home off the market for one reason or another. When interest rates are low, sometimes they decide something similar to “well, if I can’t sell it – maybe I can just refinance and get a lower payment”. If you find yourself in this situation, be sure to ask your loan officer about the recently listed guidelines at their company.
Generally speaking, here are a few common recently listed guidelines:
- If you want to refinance with cash out, you are going to have a longer waiting period from when the property was no longer waiting to be sold. A “normal” time may be as long at 180 days.
- If you refinance with no cash out, just want to get a lower interest rate – a common waiting period is 30 days.
- Depending on what type of loan (FHA loan, Conventional loan, etc.) the recently listed waiting period may be different.
- The underwriter will pay particular attention to the appraisal. It must not be listed for sale and will need to verify that the listing has been withdrawn or expired. A second appraisal may be requested or required.
- The underwriter will look carefully at evidence that you are currently occupying the property.
- A letter of explanation stating that you intend to occupy the property and outline a reason that you were trying to sell the house – and why now you are applying for a refinance.
If you have recently listed your home for sale, but have taken it off the market and are now applying for a refinance – it isn’t impossible to get done, but it is important to be informed about possible things the underwriter wouldn’t normally scrutinize as closely.
Things change – just be ready to explain why when refinancing a property you tried to sell but didn’t.