Posted by Mark Washburn on Wednesday, January 13, 2010 at 8:14:12 AM By Mark Washburn / January 13, 2010 Comment
The Miami Press reports on new guidelines coming out from the U.S. Treasury that will place a 10 day limit on bank approval for a short sale. These guidelines cover mortgages for institutions participating in the Home Affordable Modification Program including JP Morgan Chase and Bank of America. Fannie Mae and Freddie Mac backed loans are not part of this program, but these two organizations are working on their own short sale standards. If enforced, these guidelines should dramatically alter the dynamics of a short sale transaction. The current modus operandi on a short sale transaction involves bank approval delays that can stretch on for many, many months. Pending, but unapproved or denied short sale listings are clogging our MLS, and setting unrealistic pricing standards in some communities. I applaud the Administration and Treasury Department efforts to introduce standards to the short sale process. Our extensive inventory of Cape Coral short sale listings and Fort Myers short sale listings could sure use some trimming through expediting the decision making process.
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