Bill to Speed Up Bank’s Response to Short Sale Offers Introduced in U.S. House
The bill would impose a deadline of 45 days on lenders to respond to short sale requests.
Palm Coast, FL – April 13, 2011 – The Prompt Decision for Qualification for Short Sale Act of 2011 was introduced yesterday in the U.S. House of Representatives by Tom Rooney (R-FL) and Robert Andrews (D-NJ). If passed, the bill would impose a deadline of 45 days on lenders to respond to short sale requests.
I recently closed on a condominium in Tidelands, 7 months after the sales contract was submitted to the two lenders. Of 492 single-family Flagler County homes listed today in MLS as under contract (pending or contingent), 298 (60.6%) are short sales. Of 104 condominiums under contract, 69 (66.3%) are short sales.
“REALTORS® and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale. After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure,” said NAR President Ron Phipps.
Short Sale Decisions
Toby,
I haven’t read the bill, what is the repercussion for not doing this in 45 days? How do you regulate out of state banks?