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California Association of Realtors Calls for Short Sale Reform

The ""California Association of Realtors"":http://www.car.org (CAR) sought to bring attention to what the organization describes as the state's ""ineffective"" short sale process Thursday by placing an open letter advertisement in California's seven largest daily newspapers.
[IMAGE] The ""letter, signed by CAR president"":http://www.car.org/newsstand/news/openletter/ Beth L. Peerce, called on lenders and industry regulators to streamline and improve the short sale process.

""With the number of homeowners who owe more than their mortgage is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012,"" said Peerce. ""Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.""

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According to the letter, more than 640,000 Californians lost their homes during the past three years. The association says short sales accelerate home sales and reduce the inventory of bank-owned homes on the market. But many homeowners are unable to successfully negotiate a short sale because lenders' short sale processes and procedures vary widely, according to CAR.

""Poor and slow service by many banks and servicers have only exacerbated the problem,"" the letter states. ""Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery.""

CAR has appointed two task forces to help address this issue, advocating for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program and meeting with major banks, U.S. Treasury officials, and other industry leaders to attempt to standardize processes.

""… We're focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California's economic future to resolve this issue and others that get in the way of a recovery. … Our families and communities can't wait any longer,"" the letter concludes.

About Author: Heather Cernoch

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