Will HR 1498 Really Speed Up The Short Sale Process
(April 12) a bill regarding short sales was introduced into the House of Representatives. H.R. 1498, “Prompt Decision for Qualification of Short Sale Act of 2011”, was submitted by Representatives Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.) Its purpose is summarized, “To require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale.”
HR 1948 “Prompt Decision for Qualification of Short Sale Act 2011” focus is to get the banks/mortgage servicers to respond to sellers within 45 days with a decision. The intent is to reduce the time it takes to close a short sale and hopefully forestall the property from going into foreclosure. The decision is based on a complete package with the bank in receipt of all the required documents–with everyone agreeing that all the documents are in one file. The delay in many instances is the constant request for the same documents (where do these documents disappear to?). Sellers frustration is escalated when the banks request the same documents over and over again.
So the “45 days to process a short sale” could still be 60, 90 or even 120. Who knows – only the banks!
Filed under: Real Estate
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