New rules governing short sales are designed to make the process faster and easier. The rules are part of the Treasury's Home Affordable Foreclosure Alternatives - HAFA - program and are aimed at speeding up lenders' decisions on short sales and making life easier for sellers and buyers.
Prior to HAFA, the time period for short sales varied greatly among lenders and it was a very uncertain process. A short sale can be done only with the seller's lender's permission. The lender would often take months to decide whether to accept the buyer's offer. Even when the delayed answer was a "yes", the buyer had often given up and had bought another house.
Under HAFA, if a buyer offers to purchase a "short sale" home, the lender sends the seller and the buyer a document called a "request for approval of short sale" or RASS and a thick pile of accompanying paperwork. Once the documents are completed and returned to the lender, the lender is required to give a yes or no response within 10 days of receiving the RASS. Time will tell if this makes "short sales" more easily sold.
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