The Prompt Notification of Short Sale Act

From the office of U.S. Senator Sherrod Brown.

WASHINGTON, D.C. —With nearly one in four Ohio homeowners underwater on their mortgages, U.S. Sen. Sherrod Brown (D-OH) unveiled a plan to improve the housing market by addressing “short sale” transactions. Short sales are real estate transactions that must be approved by the bank because the seller owes more on his/her mortgage than the proposed sale price. Brown’s bipartisan legislation, the Prompt Notification of Short Sale Act, 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. Brown released county-by-county information on the percentage of Ohio homeowners who owe more on their mortgage than their property is currently worth.

“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 on a news conference call today by a northeast Ohio homeowner whose home has been on the market for nearly two years. Despite multiple offers from buyers, the deals fell through because of delays by her mortgage lender. Seth Task, treasurer of the Cleveland Area Board of Realtors (CABOR) 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.

Presently, it can take months to get any kind of response from banks or other loan servicers to short sale offers. 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 the county-by-county data.

Ohio County Percent of Homeowners Whose Homes Are Underwater
Adams 18%
Allen 30%
Ashland 26%
Ashtabula 30%
Athens 3%
Auglaize 24%
Belmont 15%
Brown 25%
Butler 29%
Carroll 18%
Champaign 28%
Clark 31%
Clermont 27%
Clinton 40%
Columbiana 19%
Coshocton 21%
Crawford 37%
Cuyahoga 33%
Darke 17%
Defiance 27%
Delaware 19%
Erie 24%
Fairfield 28%
Fayette 34%
Franklin 32%
Fulton 28%
Gallia 31%
Geauga 17%
Greene 23%
Guernsey 20%
Hamilton 31%
Hancock 26%
Hardin 27%
Harrison 17%
Henry 26%
Highland 32%
Hocking 13%
Holmes N/A
Huron 25%
Jackson 21%
Jefferson 18%
Knox 25%
Lake 27%
Lawrence 17%
Licking 25%
Logan 23%
Lorain 30%
Lucas 38%
Madison 24%
Mahoning 27%
Marion 30%
Medina 20%
Meigs 12%
Mercer 12%
Miami 24%
Monroe N/A
Montgomery 36%
Morgan 21%
Morrow 34%
Muskingum 26%
Noble 17%
Ottawa 22%
Paulding 24%
Perry 24%
Pickaway 27%
Pike 34%
Portage 24%
Preble 23%
Putnam 13%
Richland 34%
Ross 22%
Sandusky 30%
Scioto 17%
Seneca 28%
Shelby 26%
Stark 21%
Summit 28%
Trumbull 30%
Tuscarawas 21%
Union 23%
Van Wert 22%
Vinton 39%
Warren 24%
Washington 13%
Wayne 20%
Williams 24%
Wood 22%
Wyandot 30%

Source: http://www.zillow.com/visuals/negative-equity/#8/39.804/-84.070

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