NEW BILL TO SPEED UP SHORT SALES
In April 2011 a similar bill was introduced, but it never came up for debate before a House committee. The previous version said that if a borrower submitted a written request for a short sale of a home and if they did not receive a written response within 45 days, the request will be considered approved.
We’ll see if anything happens to this one. Here we have 75 days to respond and it include a penalty if they the lenders do not comply. Full article is below.
Feb 17 2012
Bill Would Address Needless Waiting Game for Buyers of “Short-Sale” Homes
WASHINGTON, D.C. – Senators Lisa Murkowski (R-AK), Scott Brown (R-MA) and Sherrod Brown (D-OH) today introduced legislation to improve the housing market by addressing “short sales” – real estate transactions that must be approved by the bank because the seller owes more on their mortgage than the proposed sale price. The legislation addresses the lengthy closing process that often comes with a short sale by requiring banks to respond in a timely manner when prospective buyers are attempting to purchases such homes.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
“It’s time to close the communication gap between banks and prospective homeowners who are willing and able to purchase short sale properties,” said Senator Scott Brown. “Our economy needs these home sales, and this legislation would lift the real estate market and benefit neighborhoods across the country.”
“For most buyers, short sales are anything but. The seemingly-endless waiting game associated with short sales represents a dangerous drag on our housing market,” Senator Sherrod Brown said. “If we’re going to recover from the housing crisis, we need to make it easier for qualified candidates by purchase homes. This common-sense legislation helps prospective home buyers and distressed homeowners alike, while helping to rebuild our neighborhoods and fostering long-term economic growth.”
“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure. As the leading advocate for homeownership, Realtors are supportive of any effort to improve the process for approving short sales.” – National Association of Realtors President Moe Veissi
The Prompt Notification of Short Sale Act would improve the process for buyers considering a “short-sale” home – a home where sellers are in negative equity and cannot pay off the balance. Presently, it can take many months to get any kind of response to short sale offers. The legislation:
- Requires a written response of an acceptance, rejection, counter offer, or the need for an extension of time within 75 days of a request from a homeowner.
- Creates a $1,000 penalty for those that don’t comply, along with legal fees.
Feb 17 2012
Bill Would Address Needless Waiting Game for Buyers of “Short-Sale” Homes
WASHINGTON, D.C. – Senators Lisa Murkowski (R-AK), Scott Brown (R-MA) and Sherrod Brown (D-OH) today introduced legislation to improve the housing market by addressing “short sales” – real estate transactions that must be approved by the bank because the seller owes more on their mortgage than the proposed sale price. The legislation addresses the lengthy closing process that often comes with a short sale by requiring banks to respond in a timely manner when prospective buyers are attempting to purchases such homes.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
“It’s time to close the communication gap between banks and prospective homeowners who are willing and able to purchase short sale properties,” said Senator Scott Brown. “Our economy needs these home sales, and this legislation would lift the real estate market and benefit neighborhoods across the country.”
“For most buyers, short sales are anything but. The seemingly-endless waiting game associated with short sales represents a dangerous drag on our housing market,” Senator Sherrod Brown said. “If we’re going to recover from the housing crisis, we need to make it easier for qualified candidates by purchase homes. This common-sense legislation helps prospective home buyers and distressed homeowners alike, while helping to rebuild our neighborhoods and fostering long-term economic growth.”
“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure. As the leading advocate for homeownership, Realtors are supportive of any effort to improve the process for approving short sales.” – National Association of Realtors President Moe Veissi
The Prompt Notification of Short Sale Act would improve the process for buyers considering a “short-sale” home – a home where sellers are in negative equity and cannot pay off the balance. Presently, it can take many months to get any kind of response to short sale offers. The legislation:
- Requires a written response of an acceptance, rejection, counter offer, or the need for an extension of time within 75 days of a request from a homeowner.
- Creates a $1,000 penalty for those that don’t comply, along with legal fees.
Foreclosure crises is not even half way over…
Center of Responsible Lending compliled a report – “Lost Ground, 2011”. It is based on an analysis of 27 million mortgages made over a five-year period. Here are our top-line findings:
The nation is not even halfway through the foreclosure crisis. 6.4 percent of mortgages made between 2004 and 2008 have ended in foreclosure, and an additional 8.3 percent are at immediate, serious risk.
Foreclosure patterns are strongly linked with patterns of risky lending. Foreclosure rates are consistently worse for borrowers who received high-risk loan products that were aggressively marketed before the housing crash.
The majority of people affected by foreclosures have been white families. However, borrowers of color are more than twice as likely to lose their home as white households.
To read a full report go to Lost Ground 2011.
Center of Responsible Lending compliled a report – “Lost Ground, 2011”. It is based on an analysis of 27 million mortgages made over a five-year period. Here are our top-line findings:
The nation is not even halfway through the foreclosure crisis. 6.4 percent of mortgages made between 2004 and 2008 have ended in foreclosure, and an additional 8.3 percent are at immediate, serious risk.
Foreclosure patterns are strongly linked with patterns of risky lending. Foreclosure rates are consistently worse for borrowers who received high-risk loan products that were aggressively marketed before the housing crash.
The majority of people affected by foreclosures have been white families. However, borrowers of color are more than twice as likely to lose their home as white households.
To read a full report go to Lost Ground 2011.
National REO Statistics
These Are The National REO Statistics:
1,600,000 Homes are currently owned by Lenders/Banks
3,600,000 Mortgages are delinquent and at risk of foreclosure
14,000,000 Mortgages are at 125% or greater LTV than the
actual home values
These Are The National REO Statistics:
1,600,000 Homes are currently owned by Lenders/Banks
3,600,000 Mortgages are delinquent and at risk of foreclosure
14,000,000 Mortgages are at 125% or greater LTV than the
actual home values
Mortgage applications are down almost 12%
I hope it is just the holiday season. The latest weekley survey by Mortgage bankers association.
I hope it is just the holiday season. The latest weekley survey by Mortgage bankers association.
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