Newlegislative act “Prompt Decision for Qualification of Short Sale Act of 2010,” was presented to the United States Congress not too long ago by Rep. Tom Rooney of Florida and Dem. Robert Andrews on NJ. This bill is an effort help stop prospective buyers from giving up on short sales agreements due to the long response of lenders which could take several months. If you have purchased a house and understand the stress involved in waiting days for a response in a normal sale, picturing the frustration of those that have attempted or purchased a short sale is difficult. Though many lenders have beefed up the size of their short sale staffs, many likely have a still need dramatic improvement in improving response times. The Library of Congress asserts that this bill will “require the lender of a home loan, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale” This bill is strongly supported by the National Association of Realtors and most state and local Realtor Associations especially in those area hit the worst by short sales and foreclosures such as Florida, California, and Nevada. This legislation is coming at a time when the real estate market cannot afford for possible purchasers to wait for months to take a property off the market. In some states allow special short sale addendum in depressed areas such as in Spring Hill, TN, where the Tennessee Real Estate Commission lets agents to use form 49C which lets sellers leave their property on the market even if an has been accepted. States like Tennessee give potential homebuyers a skewed sense of the number of home on the market that are not pending. If this legislation is passed, it may entice more potential purchasers to consider a short sale and might allow present home owners to avoid foreclosure and give them opportunity to reenter the Real Estate market sooner.
