There is a proposed new bill to help prevent foreclosure through quick short sales in order to help homeowners avoid losing their homes from the current slow short sale process. There are quite a few senators that are proposing this new bill, the Prompt Notification of Short Sale Act, to address the issue of short sale timelines.
If passed, the new bill will require a written response from the lender within 75 days of receipt of the written request from the buyer. The lender must respond within the 75 days with a specific acceptance, a counter offer, rejection, need for extension, and an estimated decision date. Only one extension of no more than 21 days will be permitted. If the Act is violated the buyer will be awarded $1,000 plus attorney fees.
Many people are worried that this Act will bring down the value of homes even further. However, a release from Short Sale New England showed short sales did not bring down the value of homes and neighborhoods like foreclosures do. And, according to a HomeGain survey, over 80% of short sale buyers were happy with their purchase.
The current short sale process is lengthy and buyers end up walking away, which ends up with the homeowner foreclosing. So, many people are supportive of the proposed Act.