The settlement reached recently between five major mortgage servicers and state attorneys general has some provisions that should make real estate agents perk up: After receiving a completed short sale package, the servicers will have 30 days to issue an approval or denial.
Pause and let that sink in.
Of course, the next obvious question is, And what if they don’t?
The enforcement mechanisms aren’t exactly draconian: According to HousingWire’s intrepid Jon Prior, the servicers must establish internal groups that will review all short sale requests for the first two months of a quarter. And if they exceed the 30-day limit on more than 10 percent of requests, they’ll be considered in "potential violation."
Considering all the blows these servicers have absorbed in the past few years, it’s hard to imagine them quaking in their boots at that prospect. But, it’s a step in the right direction. And this 30-day requirement is echoed in the new HAFA guidelines released earlier this month.
(Cue the late blues singer Etta James, singing above a swirl of violins, "At last …")<!-- .entry-content -->