Senate Legislation Requires Lenders to Speed Up Short Sale Process

Short Sales only impact the credit record for three years while foreclosures last seven years. Thus, many people under water on their mortgages have sought this route to sell their homes. However, lenders are extremely slow and have no strong desire to accept the loss. They hope that over time the home owner will obtain additional finances to continue payment.

Three senators are now banding together to require lenders to speed up the short sale process. The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer. The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.

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