A bill introduced in Congress this week that would require servicers to respond to borrower short sale requests within 45 days has won early support from the National Association of Realtors (NAR). The legislation, H.R.6133, Prompt Decision for Qualification of Short Sale Act of 2010, was offered by U.S. Reps. Robert Andrews, D-N.J., and Tom Rooney, R-Fla.
Servicers have long been criticized for long turnaround times on short sale decisions, which involve the buy-in of multiple parties.
‘While the lending community has worked to improve the size and training of their short sales staffs, they still have a long way to go on improving response times,’ says Vicki Cox Golder, NAR's president.
The number of potential short sale properties is rising across the country, NAR says. According to the trade group's data from the second quarter, Nevada, California, Florida and Arizona are states where significant shares of all properties on the market are potential short sales: 32%, 28%, 27% and 24%, respectively.
‘Potential home buyers are walking away from purchasing short sale property, because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price,’ Golder adds. ‘Many consumers have mentioned that the delay in short sale price approval exceeds 90 days and, in many cases, never arrives.
SOURCE: National Association of Realtors