Tired of waiting weeks and months to get an answer on a short sale? Rep. Robert Andrews (D-NJ) feels your pain.
Andrews last week introduced H.R. 6133, which would require lenders to respond to short sale requests within 45 days of the request being made. For those who remember their Schoolhouse Rock, this means “Bill” is sitting around on the steps lamenting that it’s a “long, long wait while I’m sitting in committee” (and likely will get longer with the House debating whether to recess early to save their … er … seats.)
A cynic might point out that the Treasury Department already created a program “requiring” a short response time – require in quotes because it was an optional program and many types of loans, particularly those that were backed by Fannie or Freddie Mac were exempt.
What also should be interesting is how this applies to the investors who ultimately make the decision whether or not to accept the loss on a short sale. A lender can say yes quickly but it’s a moot point if the investor takes another six weeks or more to make up their mind. Can you really hold the lender to any kind of meaningful deadline when the lender isn’t making the final decision.
(h/t: way too many people on Facebook to mention.)