I tried calling the listing agent to get clarification but was unable to reach him at the moment. According the the MLS, the property is back on the market (keep in mind though that a sale can take up to 10 days to report per MLS rules).
The home at 502 Elmdale St NE is subject to "short sale" approval by the seller's lender and it's not at all uncommon to see these come off and back on the market.
I suspect that the seller's lender (who has to approve the short sale) rejected the terms of the proposed sale and therefore the home is now back on the market. When a bank receives a short sale offer, they will typically obtain a value analysis by a 3rd party who is unrelated to the transaction (often referred to as a BPO or Broker Price Opinion). Again my hunch is the BPO valuation came in higher than the previous list price and therefore the listing agent had to raise the listing price since the seller's lender would not approve a lower sale amount. This is an educated guess based on a lot of experience although different circumstances may apply.
With "short sales" THREE parties have to agree on the sale price (buyer, seller, and seller's lender) instead of just the typical two parties (buyer and seller). The problem is the seller's lender doesn't usually have any say in setting the initial listing price and often times the lender is not willing to go as low as the buyer and seller would like. If you have more questions on short sales and how they work, feel free to send me an email or give me a call.
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