A bipartisan trio of U.S. Senators introduced a bill that would require banks and other mortgage lenders to respond to prospective short sale homebuyers within 75 days, expediting the process for underwater homeowners who are struggling to unload their properties.
The Prompt Notification of Short Sale Act, S.2120 is designed to hasten the process for short sales and prevent additional foreclosures.
The bill requires lender's prompt response to the buyer and must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer will be limited to one extension of no more than 21 days. The bill will also allow the buyer to be awarded $1000, plus "reasonable" attorney fees if the Act is violated.
"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 homeowner from foreclosure," said Moe Veissi, president of the National Association of Realtors. "As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales."