Most boards have experienced more than their fair share of frustrations in the short sale process. In a short sale, the mortgage company accepts less than is due on the mortgage to allow a property to sell to a new homeowner.
It is common for the board, manager, or attorney to be contacted by the homeowner’s realtor requesting the board also accept less than is due on their lien. The board then agrees to accept the offered amount, or makes a counteroffer. After the board has spent their time and energy making a decision, often they receive word that the mortgage company did not respond quickly enough and the potential buyer is now gone. This can be very frustrating for a board.
There may be relief in sight! Under new rules taking effect on June 15, 2012, Fannie Mae and Freddie Mac will be required to provide a final decision on a short sale within 60 days of its submission. With a response deadline defined, hopefully more associations will see short sales successfully completed, resulting in much needed funds coming back into the community.
For more information about other impacts of a faster short sale process, read The New York Times article, Speeding Up Short Sales.