Great news if you are trying to sell your home or buy a home in Chandler and Gilbert – in fact any city in the Phoenix area. 5 of the biggest mortgage lenders have recently agreed to some new short sale approval rules spelled out by the feds. These banks are Citi, GMAC-Ally, JPMorgan Chase, Wells Fargo and Bank of America.
Here are some of the new requirements for the mortgage servicers to follow under the Federal Attorneys General guidelines:
- if you are selling your home and request a short sale, your servicer must make a decision in most cases within 30 days – and in some cases 60 days.
- if you are trying to buy a short sale home, the sellers servicer approval your purchase request must let you know with 30 days if your paperwork is missing anything
Banks will be considered in violation of the settlement requirements if they take longer than 30 days on more than 10 percent of the short sale requests. Violations can carry fines of up to $1 million and $5 million for repeat offenses. What this means to you as a home seller and as a home buyer is that the short sale process here in Arizona should speed up much quicker.