Washington, DC – Last week, Congressman Jerry McNerney (CA-09) introduced bipartisan legislation to help struggling homeowners who may be facing foreclosure by requiring lenders to fast-track the short sale process.
The Fast Help for Homeowners Act, which is cosponsored by Congressman Walter Jones (NC-09), would compel a second mortgage lender of a federal mortgage loan to review and make a decision on a short sale agreement within 30 days. If the lender does not make a decision within that timeframe, the short sale will be deemed approved on the 31st day.
“Too many homeowners in need are left in limbo for far too long,” said Congressman McNerney. “By reducing the approval time for a short sale decision, we would give these individuals and their families peace of mind that a timely conclusion will be made.”
Short sales can help both lenders and homeowners. This transaction occurs when a seller’s lender agrees to accept a payment for less than the remaining balance on the seller’s loan. However, when a homeowner initiates a short sale request, some second mortgage lenders use stonewalling tactics to delay a payment to the first mortgage lender, which can be damaging to a homeowner’s credit score and to the housing market.
The Fast Help for Homeowners Act has received support from a number of stakeholders, including:
The National Association of Realtors (NAR)
“The National Association of REALTORS® commends Congressman McNerney for working to improve the short sale process for distressed homeowners and help them to avoid foreclosure. We look forward to working with Congressman McNerney and other members of Congress to advance and enact this important legislation for the benefit of families, communities, the housing market and economy.” – Elizabeth Mendenhall, NAR President
The California Association of Realtors (CAR)
“C.A.R. applauds Congressman McNerney for introducing this common-sense piece of legislation and supports the FHFH Act. By requiring lenders to respond to short sale offers in a fair and reasonable amount of time, the FHFA Act will help ensure distressed properties are brought to market.” – Steve White, CAR President.
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Rep. Jerry McNerney proudly serves the constituents of California’s 9th Congressional District that includes portions of San Joaquin, Contra Costa, and Sacramento Counties. For more information on Rep. McNerney’s work, follow him on Facebook and on Twitter @RepMcNerney.