House Bill Would Force Lenders to Decide on Short Sales in 45 Days

House Bill Would Force Lenders to Decide on Short Sales in 45 Days

Distressed homeowners looking for a way out of their mortgage that doesn’t involve foreclosure may find relief is on the way from a new bill introduced in the U.S. House.

The legislation would impose a deadline on lenders to respond to short sale requests, requiring them to return an answer to the borrower within 45 days.

The bipartisan bill, Prompt Decision for Qualification of Short Sale Act of 2010 (H.R. 6133), is sponsored by Reps. Robert Andrews (D-New Jersey) and Tom Rooney (R-Florida).

Lenders have taken a lot of heat for the elongated timelines it takes to get an approval on a short sale proposal.

“I have heard from many short sellers in Florida whose potential homebuyers have walked away because they couldn’t get a ‘yes’ or ‘no’ from their lenders,” Rep. Rooney said. “This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly.”

This is an interesting article on a proposed bill that would require lenders to return an answer to borrowers within 45 days. Nothing wrong with trying to speed up this process. It is typically a wasteful and unnecessarily long process to complete a short sale and in declining markets can cost just about everyone more money.

Posted on Calabasas Homes-Calabasas Real estate – Santa Monica Homes-Santa Monica Real Estate

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