Bill May Help Speed Up Short Sales

Washington, DC, July 20, 2012 --  A proposed bill may soon help speed up the approval process for homeowners selling their home through short sale by requiring subordinate lien holders to review and respond to short sale requests within 45 days.
 
The legislation, "The Fast Help for Homeowners Act," was offered in Congress today by U.S. Rep. Jerry McNerney (D-Calif.) and is strongly supported by the National Association of Realtors.

"Realtors know that issues and delays with secondary lien holders remain an obstacle to streamlining the short sale process," said NAR President Moe Veissi in a press release.

"Short sale negotiations are much more difficult for borrowers who have multiple servicers involved and ongoing delays continue to severely limit the number of homeowners who are approved for short sales, forcing many homeowners into foreclosure."

The proposed legislation would establish guidelines requiring the primary lien holder to inform secondary and any subsequent lien holders of a request for short sale. The bill would also impose a deadline for subsequent lien holders to respond to both the primary lender and the consumer following a short sale request.