Lenders are notorious for foot-dragging shorts sales in Orange County, California, but new rules are emerging to shorten and simplify the short sale process.
As of April, 2012, however, these new federal rules shorten the time to process short sales:
1. Lenders must act within 30 days;
2. Lenders must make a final decision within 60 days, and
3. Lenders must provide weekly updates for offers after 30 days.
In a traditional equity sale, home value is greater than its outstanding loans. But when outstanding loans exceed property value, the result is a short sale. Unlike the standard sale, a short sale requires lender approval and can stretch-out the process. In 2011, short sales in Orange County averaged over five months.
Many homeowners cease making payments during the short sale process. Expediting the sale benefits everyone. The process will no longer tax the patience of buyers, and homeowners will save thousands in carrying costs.
For Orange County short sales, these are the most promising changes we've seen in awhile!
by: Brian L. Sirota, Esq.