Senate bill requires response to short sale requests within 75 days

Contrary to what many believe, the recently enacted senate bill 306 does NOT require lenders to review short sale requests from sellers and their agents within 21 days. The new California law, which addresses certain escrow procedures, has been mischaracterized by some real estate agents as landmark legislation calling for a 21-day turnaround.

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Senate bill requires response to short sale requests within 75 days The bill would provide that failure to record a declaration of compliance, or failure to materially comply with specified pro visions, w ould constitute grounds for the borrower to bring an action, within one year of the trustee sale , to v oid the foreclosure, request an.

Recently enacted Senate Bill 306 does not require lenders to review short sale requests from sellers and their agents within 21 days. The new California law, which addresses certain escrow procedures, has been mischaracterized by some practitioners as landmark legislation calling for a 21-day turnaround for short sale approvals.

S.361, the Prompt Notification of Short Sale Act would help buyers considering purchasing a "short-sale" home by providing a clear understanding and schedule of when they must hear back from the mortgage holder. presently, it can take many months for any kind of response to short sale offers – if a response is given at all.

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