What can Indiana REALTORS do when Short Sale Offers are getting no response from the Lender ?
New LAW in Indiana affecting Short Sale Response Times For Lenders HB 1359 states that a lender has 10 days to acknowledge receipt of a short sale offer and 30 days to respond to the offer.
Recently, an email newsletter from our Local REALTOR Board had the link to the form needed to file a complaint should the lender not respond to an offer according to the parameters of this Law.
***Complete this form referencing Indiana Code listed below, details of the lack of response within the required guidelines and supporting documentation. Mail or fax the address below and send copy of the complaint to the lender:
Indiana Department of Financial Institutions
Attention: Dave Larson
30 South Meridian Street
Suite 300
Indianapolis, Indiana 46204-2759
FAX: 317-232-7655
Indiana Code References:
Please NOTE before you do this.....Many times, the loss mitigation departments of lenders (which may be located outside of our state of Indiana) are not even aware of this NEW Law...so, just sharing the info & informing them of HB 1359, usually gets the ball rolling in your clients favor.
We have not had to fill this form out YET, as the majority of our Short Sale Listings so far have closed successfully and in a reasonably timely fashion. (Of course we do make sure ALL our ducks are in a row asap with a Short Sale Listing...i.e. short sale package has been totally completed & submitted by our sellers to the lender and the BPO is done, etc..).
However, we have had calls from Indiana REALTORS who've had LONG SALE stories (no pun intended ).
....so we are posting these links & info for your reference.....
FYI ....Our GNIAR newsletter also shared this comment which we will quote...
***"Note: Filing this complaint form does not guarantee response from the lender. The Indiana Department of Financial Institutions will track the complaints and look for measures of repeat offenses by certain lenders. Copying the lender on the complaint is also an important step in reminding the lender that Indiana Law requires these response times."***
***source*** = GNIAR - Greater Northwest Indiana Association of REALTORS Legislative Update.
_____________
Jeff
& Grace
Safrin " Spouses Selling Houses" TM
Real Estate Broker Associates with F.C. Tucker - Indiana's Largest Real Estate Company
If we can help you find a home or land in NW Indiana, give us a call @ 219-405-1232 - we are Full Time Full Service Real Estate Brokers serving Lake, Porter, La Porte, Jasper & Newton Counties.
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This is great! Now how do we get Florida to follow suit. Short sales are not rocket science. If the lenders would actually communicate exactly what they need in a timely mannor, this process would be faster. The problem is that the lenders don't have good systems.
I just printed this form out and saved it too. I represent buyer on a short sale and the seller's agent has threatened HB1359 but it keeps getting passed to another negotiater. Wrote the offer on 1/11/09; still have not heard. ARgh.....
Hi Jeff- long time no see - hope all is well in Panama City during spring :)
We've found that the majority of lenders do have specific systems they implement for their loss mitigation dept. to follow - but they don't disclose them to us LOL -the processors are sooo overwhelmed with hundreds of files per person!
As for florida following suit - IAR introduced this amendment to legislation on behalf of REALTORS - you'd have to do the same in your state via your state associations legislative lobbyists :)
have a great spring
Sincerely,
Grace
Wow Cindy - that's unfortunate your buyer has to wait soo long...hope this helps.
Sincerely,
Grace
Thank you Thank you Thank you for this reminder. This is now in effect for sure? I took a short sale continuing ed class on this, but this reminder couldn't have come at a better time. I LOVE this site!!!!!
You are welcome Heather - yes this law went into effect Jan 2009. Hope it helps you.
Sincerely,
Grace