Finally! Lawmakers propose deadline for short-sale deals

A Senate proposal would expedite short sales by giving mortgage lenders or servicers 75 days to respond after receiving a homeowner’s written request.

Borrowers must submit a copy of a contract with a prospective buyer to the lender/servicer – which can accept it, reject it, or seek an additional three weeks to consider it.

For each instance where the lender/servicer fails to respond, borrowers would receive $1,000, along with other “appropriate relief,” according to the bill sponsored by Sens. Lisa Murkowski (R-Alaska), Sherrod Brown (D-Ohio), and Scott Brown (R-Mass).

The short-sale process has been criticized as lengthy and cumbersome with potential buyers often left in the dark regarding a lender’s response. Some short sales have taken more than a year to complete.