Foreclosure in Los Angeles>Question Details

Kristie, Home Buyer in Cleveland Heights, OH

My agent told us that effective 4/6/10, Obama has a new law for short sales. It states that banks have 10 days to respond to buyers. Is this true?

Asked by Kristie, Cleveland Heights, OH Wed Apr 14, 2010

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Under the newly-implemented Home Affordable Foreclosure Alternatives Program (HAFA), the borrower/Realtor --owner of the property to be sold -- must convey a request for Approval of Short Sale (RASS) within 3 days. The servicer must accept, deny or counter within 10 days.

That's not how long it will take to close the deal; only the timeline in which a lender is supposed to respond to there being a short sale on the table. The lender must respond to their client, or the seller; not the buyer. Having said that, the seller's Realtor will assuredly notify the buyer's Realtor as soon as the lender responds.
1 vote Thank Flag Link Wed Apr 14, 2010
See the link for additional information.
0 votes Thank Flag Link Thu Apr 15, 2010
This program the banks have to registered with the program and the borrower needs to qualify for the program. Major qualifications with the owner is primary residence, living in the property and valid hardship reason. An application is sent to owner for approval and then the lender starts monitoring sale of property at the point it is listed. Then the lender is suppose to make a decision in 10 days. If the lender is not in the program or none of the other things are done, all bets are over.

We will she how the program works, it just started 4/5/10. Like everything, there is a lot of miss information out there.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Thu Apr 15, 2010
It's not an actual law, but guidelines. There are many factors involved to determine if the seller qualifies. There will be many of these second lien holders who will not go for it as it's not worth giving up there right to collect on a deficiency judgment.
0 votes Thank Flag Link Wed Apr 14, 2010
The answer that Wanda gave you was absolutely true! The only problem is that this new "law" is optional. It is not mandatory for lenders to participate.

I am about to try out the new system this week with Chase Bank. Let's see how it goes.... Wish me luck!

Since I have been successfully closing short sales since 2005 (long before most people even knew what they were) anything has to be better than it's been for the past few years.

Good question. I wish you luck on your home search! :)
0 votes Thank Flag Link Wed Apr 14, 2010
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