NEW Short Sale Rule to Correct Lag...

A new Rule for Banks takes effect on June 15th.  It requires the Lender to respond to a Short Sale Application within 30 days.

This will have a dramatic effect on the time it takes to process a Short Sale Transaction and will put them on a closer par with normal Transactions.  Currently, an initial Short Sale Application can take anywhere from 60 to 180 days for a response.  Sometimes the Lender will come back with a request for a higher price.  This has made Short Sale Transactions a secondary choice among Buyers and their Realtor as it is uncertain.

Recently the Fed (US Federal Reserve - Bernanke) & CFPB (Consumer Finance Protection Bureau) have concluded that it would prefer most Lending Banks to use the Short Sale process rather than foreclosure as a means of curing defaults considering the net costs of each program.

There are also benefits to Sellers of using a Short Sale rather than letting a Foreclosure happen - most times we can get the Bank to postpone the Foreclosure Sale to allow a Short Sale to take place.   This has many benefits to the Seller in terms of credit reporting, length of time to repurchase, and overall peace of mind.

- Brent