Legislation introduced to speed short sales

A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure.

The bill, introduced in the U.S. House yesterday and supported by the National Association of Realtors, would impose a deadline of 45 days on lenders to respond to short sale requests.

The legislation, the Prompt Decision for Qualification for Short Sale Act of 2011, was offered in Congress by U.S. Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.).

“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 home owner from foreclosure,” said Ron Phipps, NAR president.

Short sales represent about 13 percent of recent home sales, according to NAR data.