Until now, the short sale process has been riddled with waiting games and lender hang-ups that caused homeowners undue stress in an already overwhelming time. Consumers who are working through a short sale as a means to avoid foreclosure will soon see improvements in the process.
Big lenders have decided to make a change to the short sale process to help reduce the time it takes to process and approve offers. Previously, homeowners that were eligible to participate in the Home Affordable Foreclosure Alternatives program and participating in the short sale process were required to contact the Short Sale Customer Care line to indicate their intentions for participation in HAFA. The short sale process would be halted until homeowners completed this required step, causing much delay in the process.
As of December 1st, 2011, all short sales submitted with an offer will be able to forgo certain steps that previously slowed down the process. The lender will no longer halt the short sale process while waiting on homeowners, who are also no longer required to call and indicate their HAFA participation plans. Instead, the homeowners agent can report their interest in HAFA by written request within 14 days of receiving the notification of HAFA eligibility. If no written request is received within 14 days, the lender will proceed with the traditional short sale process.