SOLD Act Would Extend GSE Short-Sale Timeline to All
June 1, 2012
A bill filed in the Senate two weeks ago would require mortgage servicers to respond to a short-sale offer within 30 days and make a final decision on acceptance within 60 days of receiving a purchase offer. The Stopping Ongoing Lender Delays (SOLD) Act, S. 3177, sponsored by Sen. Dean Heller, R-NV, would amend the Truth in Lending Act to require servicers to provide prompt responses to homeowners seeking to refinance or for other purposes including short sales. By placing a shot clock on these decisions, it will reduce the amount of time it takes to sell a property, improve the likelihood that the transaction will close, and reduce the number of foreclosures in Nevada and across the country, Heller said in a Senate floor speech on May 15. Stability in the housing market is critical for long-term growth.