The Federal Housing Finance Agency (FHFA) will implement new short-sale rules June 15th requiring lenders to respond to an initial short sale request within 30 days.
FHFA’s new rules will also require lenders to give final short decisions within 60 days.
Given that these are governmental rules, I am sure there’s a long list of exceptions, but it’s a start.
Lenders generally prefer short sales over foreclosures because they are less costly and can be completed more quickly.
Short sales are infamous for lenders’ incompetent staff, unresponsive service, delays, and confusion over lost paperwork, requirements to repeatedly submit redundant paperwork to fax machines that are out of paper, and a long list of other issues.
I personally remain skeptical of the lenders’ ability to comply with these new regulations, given that my last short sale required selling the property three times over a year and a half before B of A could figure out how to close the deal.
Source: The New York Times article
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