Senate bill requires response to short sale requests within 75 days

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Recently enacted Senate Bill 306 does not require lenders to review short sale requests from sellers and their agents within 21 days. The new California law, which addresses certain escrow procedures, has been mischaracterized by some practitioners as landmark legislation calling for a 21-day turnaround for short sale approvals.

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Requires a written response of an acceptance, rejection, counter offer, or the need for an extension of time within 75 days of a request from a homeowner. Creates a $1,000 penalty for those that don’t comply, along with legal fees.

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