photo credit: Brian K YYZ

The new short sale legislation submitted to congress is intended to help the short sale process proceed like the name implies, a short sale. The legislation is aimed at lenders or servicers of home mortgages who usually take months to respond to an offer. The Bill will prompt decisions for qualification of short sales and will keep potential buyers from walking away from short sale deal due to the bank or lender taking months to respond.

The Prompt Decision for Qualification of Short Sale Act of 2010 (H.R. 6133) was introduced by U.S. Representative Robert Andrews (D-N.J.) and Tom Rooney (R-Fla) and is heavily supported by the National Association of REALTORS. Vicki Cox, president of NAR said "The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth. While the lending community has worked to improve the size and training of their short sales staff, they still have a long way to go on improving response times."

The term "short sale" is very misleading, it can take much longer than a normal sale due to the bank or loan servicer's time frames. This current economic state has many homeowners and homebuyers worried and a piece of legislation such as this is a welcome piece of news for them. As we can tell, the bill aims to simplify the process and speed up the time frames. A welcome act!

Read the full article from RealtyTimes

Posted in Mortgage, Denver Colorado Real Estate, Blogging, Real Estate Market Conditions, CAR, Foreclosure, Real Estate Industry, Real Estate Industry Trends, Gen X-Y, National News

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