New Bill in U.S. House on Short Sales

A new bill introduced in the U.S. House last week intended to improve the process for approving short sales may significantly improve the process.  The bill, introduced on April 12, 2011 was strongly supported by the National Association of Realtors®.  It will implement a 45 day deadline on lenders to respond to short sale requests.  For those of you who have already experienced it, whether you are on the buying or selling end of a short sale the process time can be painfully long sometimes. The NAR President, Ron Phipps, was quoted at saying “The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure,” … “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,”.  It is exciting to see the NAR really making a difference in Congress.