With One-Third Of Montgomery County Homeowners Underwater On Their Mortgages, Brown Unveils Plan To Improve The Housing Market By Addressing “Short Sale” Transactions In Dayton

Bill Would Address Needless Waiting Game for Buyers and Sellers of “Short Sale” Homes; Brown Joined a Miami Valley Couple Whose Home was on the Market for Months While They Waited to Resolve the Short Sale of Their Home with the Bank

DAYTON, OH – March 15, 2013 – (RealEstateRama) — With one-third of Montgomery County homeowners underwater on their mortgages, U.S. Sen. Sherrod Brown (D-OH) unveiled a plan that would improve the housing market by addressing “short sale” home sales. Short sales are real estate transactions that must be approved by the bank because the seller owes more on their mortgage than the proposed sale price. Brown will outline how the Prompt Notification of Short Sale Act would improve the process for both sellers and buyers involved in “short sale” transactions and bolster the housing market and our economic recovery.

“Ohio families are tired of being stuck in limbo,” Brown said. “If we’re going to fully recover from the housing crisis, we need to make it easier for qualified candidates to purchase homes. This commonsense legislation helps prospective home buyers and distressed homeowners alike—rebuilding our neighborhoods and jumpstarting economic growth.”

Brown was joined by Nicholas and Ellie Gusman, a Dayton couple whose home was on the market for months because of delays by the mortgage lender. Also attending today’s event were Nancy Farkas, president of the Dayton Area Board of Realtors, and Brett Domescik, owner of Domescik & Associates Inc, who discussed how the delays from short sales have hurt his business.

Brown’s bipartisan legislation addresses the lengthy closing process that often comes with a short sale—which can last months—by requiring banks to respond in a timely manner when prospective buyers are attempting to purchase such homes. Presently, it can take months to get any kind of response to short sale offers from banks or other loan servicers. Brown’s legislation requires a written response of an acceptance, rejection, counter offer, or the need for an extension of time within 60 days of a request from a homeowner, thereby providing both buyers and sellers of short sale properties with predictability during a real estate transaction.

Below is data on the percentage of Miami Valley homeowners who owe more on their mortgage than their property is currently worth.

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