New Bill Introduced to Speed Short Sales

A new bill to improve the process for approving short sales will hopefully provide some much due relief to distressed homeowners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House on April 12th and strongly supported by the NATIONAL ASSOCIATION OF REALTORS®, would impose a deadline of 45 days on lenders to respond to short sale requests. Our market here in Colorado would be welcome to a response of 45 days from bank lien holders to alleviate the extensive inventory of distressed properties. In addition, this will help to solidifiy negotiations between sellers and buyers as some of the “guess” work related to response times will be addressed. Many of the hiccups with the short sale process are due to the lack of banks responding in a reasonable manner. Buyers get impatient and move on to other deals and sellers just get frustrated and give up. This could be a Win-Win for all parties involved in the real estate transaction.