In a recent post from dsnews.com, Ester Cho writes about a bill that has been introduced in the Senate to speed up the short sale process. By speeding up the short sale process, the Prompt Notification of Short Sale Act looks to avoid losing homes to foreclosure as a result of the long lender response times as legitimate buyers ultimately walk away due to the lack of communication from the lender. The act would require a written response from the lender no later than 75 days after receipt of the written request by the buyer.
The requirement of a timely response from the lender will give potential buyers more confidence to look into short sale properties, which in turn should help to increase the potential buyer pool for these underwater homeowners. As a short sale is less of an impact to house values than foreclosure, this bill would help the real estate market as it slowly looks to right itself.