On Sept. 16, 2010, a new bill requiring lenders to respond to short-sale offers within 45 days was introduced into the House of Representatives. While this bill has widespread bipartisan support, is there a chance it will make the short-sale market more difficult than ever?
On Sept. 17, U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.) introduced a bill, H.R. 6133, "Prompt Decision for Qualification of Short Sale Act of 2010." On the surface, this bill seems to provide the long-sought relief consumers and real estate professionals have been seeking.
However, if a mortgagor (the borrower) submits a request to his mortgage servicer including a fully executed purchase contract, and "the mortgagor does not receive from the servicer, before the expiration of the 45-day period beginning upon receipt by the servicer of such request and information, a written notification of whether such request has been approved, that such request has been approved subject to specified changes, or that additional information is required for such a determination, such request shall be considered to have been approved by the servicer."