What can Indiana REALTORS do when Short Sale Offers are getting no response from the Lender ?
New LAW in Indiana affecting Short Sale Response Times For Lenders HB 1359 states that a lender has 10 days to acknowledge receipt of a short sale offer and 30 days to respond to the offer.
Recently, an email newsletter from our Local REALTOR Board had the link to the form needed to file a complaint should the lender not respond to an offer according to the parameters of this Law.
***Complete this form referencing Indiana Code listed below, details of the lack of response within the required guidelines and supporting documentation. Mail or fax the address below and send copy of the complaint to the lender:
Indiana Department of Financial Institutions
Attention: Dave Larson
30 South Meridian Street
Indianapolis, Indiana 46204-2759
Indiana Code References:
Please NOTE before you do this.....Many times, the loss mitigation departments of lenders (which may be located outside of our state of Indiana) are not even aware of this NEW Law...so, just sharing the info & informing them of HB 1359, usually gets the ball rolling in your clients favor.
We have not had to fill this form out YET, as the majority of our Short Sale Listings so far have closed successfully and in a reasonably timely fashion. (Of course we do make sure ALL our ducks are in a row asap with a Short Sale Listing...i.e. short sale package has been totally completed & submitted by our sellers to the lender and the BPO is done, etc..).
However, we have had calls from Indiana REALTORS who've had LONG SALE stories (no pun intended ).
....so we are posting these links & info for your reference.....
FYI ....Our GNIAR newsletter also shared this comment which we will quote...
***"Note: Filing this complaint form does not guarantee response from the lender. The Indiana Department of Financial Institutions will track the complaints and look for measures of repeat offenses by certain lenders. Copying the lender on the complaint is also an important step in reminding the lender that Indiana Law requires these response times."***
***source*** = GNIAR - Greater Northwest Indiana Association of REALTORS Legislative Update.
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