An article published  the other day in the FL Sun Sentinel about Short Sales and New Government Policies will play a BIG part in Florida real estate. If you are unfamiliar with a short sale, it is when a home owner who can no longer  pay the current mortgage, and the bank/third party selects to take a moderate loss instead of moving forward with the foreclosure process on the owner. The problem that exists with that type of sale is that the bank/third party have no set time period to approve the offer or contract to sell the home. This causes nightmares for buyers, sellers, real estate agents, and new financing institutes. A new federal guideline is being discussed to ensure a 10-day approval on contracts, so that buyers and sellers can expedite and complete the sale of the home. The questions that exist are how the new process will be enforced and how the banks will make a proper decision on their assets this quickly. Another obstacle to consider are homes that have multiple mortgages or liens. Lenders have issues with the complicated nature of the transaction and a lack of paperwork submitted by the seller & buyer in order to determine a complete financial situation, both of which cause more delays. The headaches have continued and new guidelines will be a challenge, but the idea of assigning accountability and pressure to move the process along should ultimately be a good thing for everyone.

Here is the link to the complete article.

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