MAR and NAR support the newly filed Prompt Notification of Short Sale Act, S.2120 and the Federal Housing Finance Agency's Approval Guidelines, both of which will improve the process for buyers considering a “short-sale” home.
The legislation was introduced by US Senators Scott Brown of Massachusetts, Lisa Murkowski of Alaska, and Sherrod Brown of Ohio to address decreasing the process time of a short sale.The Act would improve the process for buyers considering a “short-sale” home – a home where sellers are in negative equity and cannot pay off the balance. Presently, it can take many months to get any kind of response to short sale offers.
The legislation would require a written response of an acceptance, rejection, counter offer, or the need for an extension of time within 75 days of a request from a homeowner; and, create a $1,000 penalty for those that don’t comply, along with legal fees.a for issuing new guidance requiring servicers of Fannie Mae and Freddie Mac loans to speed responses to short saleswhich would improve. The Act currently sits with the Committee on Banking, Housing and Urban Affairs.
The Fannie Mae, Freddie Mac guidelines would require servicers to acknowledge receipt of short sale purchase offers within three business days; respond to short sale requests within 30 days (with a possible 30-day extension); and make a final decision within 60 days of receiving purchase offers. Implementation of the new guidelines should begin after June 15, 2012.