Lawmakers target short sale timeframes
Lawmakers target short sale timeframes
Have you heard of the Prompt Notification of Short Sale Act? No, it’s not law yet, but if passed it would require lenders to respond to short sale requests within 75 days.
It seems even Congress has figured out that short sale approvals take too long. And, the proposed law calls for a real response, not just “Thanks, we got your request …”.
Lenders would be required to respond in one of four ways:
The extension option could only be used for an additional 21 days, and would need to be accompanied by an estimated date for a final decision.
The law’s sponsors in the Senate include a liberal Democrat and two moderate Republicans: Lisa Murkowski (R-AK), Scott Brown (R-MA) and Sherrod Brown (D-OH).
In a rational world, two and a half months would seem like a long time to wait for a response to a simple request. But in the slow-motion universe of big mortgage servicers, this would be an actual improvement.
We’ll see if it moves the ball forward in a meaningful way.
It seems even Congress has figured out that short sale approvals take too long. And, the proposed law calls for a real response, not just “Thanks, we got your request …”.
Lenders would be required to respond in one of four ways:
- Acceptance
- Rejection
- Counteroffer
- Need for extension
The law’s sponsors in the Senate include a liberal Democrat and two moderate Republicans: Lisa Murkowski (R-AK), Scott Brown (R-MA) and Sherrod Brown (D-OH).
In a rational world, two and a half months would seem like a long time to wait for a response to a simple request. But in the slow-motion universe of big mortgage servicers, this would be an actual improvement.
We’ll see if it moves the ball forward in a meaningful way.
Rob Alley, Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
434-220-7133
roballeyrealtor@gmail.com
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