U.S. Treasury Speeds Up Short Sale Approval Process
In order to speed up the process of negotiating with lenders on properties “underwater”, the US Treasury has imposed 10-day limit on lenders to approve or deny “short sales” of real estate. Program must be implemented by lenders no later than April 2010. Additionally, Treasury is offering financial incentives to lenders, servicers and investors as well as relocation credits to borrowers. However, an aggregate cap of $3000 in short sale proceeds to subordinate lienholders has created contention among industry insiders.