On February 17, Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed a bill addressing the issue of short sale timelines. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
Currently, the process can take several months with negotiations going back and forth between the banks, real estate agents and sellers. It can be a frustrating time for both the selling and buying parties, especially if the home falls into foreclosure even after the short sale is initiated. With this proposed bill, the timeline would help ease the process and hopefully make it more efficient for both parties.
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. To learn more about this legislation, read more at DSNews.com.
In Elk Grove, Calif., over 1,609 houses are in foreclosure, and one in every 139 housing units have received foreclosure filings in January 2012, according to RealtyTrac.com. As of January 1, 2012, there were 175 active short sales on the market and 367 active short sale contingent listings in Elk Grove, according to Lori Mode of Keller Williams Realty in Elk Grove. Short sales make up a majority of the Elk Grove market – approximately 68 percent.
Since the Elk Grove market is mostly short sales, this bill would be beneficial in this area. Homeowners would be able to turn their situation around more quickly through the short sale process instead of having their home fall into foreclosure and be auctioned.
If you owe more than your home is worth, please do not hesitate to give Elizabeth Velasco a ring and set up a free and private one hour consultation!
by Tarra McCurdy – tarramccurdy@comcast.net
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