There is a new Truth In Lending law which took affect this month (August, 2009) that will likely cause additional time needed to close in normal closings, but also in many short sale transactions.
Under this law, there is a 3 day delivery time period plus the 3 day right of recission period to review the Truth 
In Lending documents before the lender can charge them any fees, such as the appraisal. This means the buyer's lender can get started preparing for closing on day 7. It also means then that a 30 day escrow will be difficult and may likely need an extension, which is increasingly more difficult now in short sales.
But that is not all. Under the new Truth In Lending Act , if the APR is off by more than 1/8 %, they need to re-disclose at the moment you think they're going to sign the loan docs, requiring another 7 day period at the end of the period. That may be the courier fee, etc. So, this new law which was passed with the intent to protect the buyers, has added at least 7, and often 14 days to the transaction.
So, closing in 14 days may be very difficult; rather, you should set your time for closing in the contract for 45 to 60 days. Check with your mortgage broker for guidance. This will be especially difficult with short sales because lenders want to close quickly so they will get the net to lender amount on the HUD-1.
Be careful about setting the day for closing. If your offer requires closing within 30 days, and if the seller will not agree to an extension later, you could be looking at those $150 or so per day per diems you agreed to in the contract. With the current changes in the Truth In Lending Act, we again have government making life harder for short sale agents, as usual.
Best wishes to you all.
Ken Lawson, JD
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