Topic:
Foreclosure short sales in residential real estate
(Silverstein, D-Chicago; Currie, D-Chicago) requires the mortgagee to respond to the mortgagor within 90 days if the mortgagor sends a bona fide written offer to purchase from a third party and requests in writing that the mortgagee approve the sale. A “short sale” is when the mortgaged real estate is being sold for less than the amount owed to the mortgagee on the mortgage note. Failure to accept the offer shall not impair or abrogate in any way the rights of the mortgage or affect the status of the foreclosure proceedings. The 90-day period shall not operate as a stay of the proceedings. It passed out of House Executive yesterday and is poised to be passed by the entire House this week.