Bill Would Spur Lenders To Speed Up Short Sales

Law360, New York (February 22, 2012, 7:20 PM EST) -- A bipartisan trio of U.S. Senate lawmakers last week introduced a bill that would require banks and other mortgage lenders to respond to prospective short sale homebuyers within 75 days, expediting the process for underwater homeowners who are struggling to unload their properties.

The Prompt Notification of Short Sale Act, S.2120, dated Feb. 16, is designed to hasten the process for short sales, which is expected to help stimulate the real estate market by enabling sales where foreclosures might otherwise occur.

The bill also imposes a...
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