Legislation Introduced To Hasten the Short Sale Process

Can we safely say that the banks can’t self regulate.

That’s why they have to be pushed, cajoled even bribed to work with homeowner out of this distressed homeowner mess. Look at all of the programs that the government has to enact just to get banks and investors to offer some solution to the ongoing foreclosure crises. We have the Feds to thank for HARP, HAMP, HAFA do we need to go on?

Now we discover that Sens. Lisa Murkowski, Scott Brown and Sherrod Brown recently introduced legislation, The Prompt Notification of Short Sale Act that aims to expedite the short sale process. We’re pretty sure that none of these Senators, let alone the rest of the lot, has endured a short sale. The legislation addresses the lengthy short sale closing process by requiring banks to respond to prospective buyers within 75 days.

Although this idea might speed up some grueling short sales, it doesn’t address the myriad other issues that come with a short sale including the over inflated property valuations that the banks come up with, the lack of communication (“Buelller, Bueller, Bueller”), or just the obtuse thinking from many banks and investors.

The Act 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.
►Create a $1,000 penalty for those who do not comply, along with legal fees.

Can the government force the banks to create a fast short sale? With a whole $1000 riding in the balance. If this bill passes then we’ll see how efficient the banks can be for 1 G.


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Filed under Banks, short sales

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