A new bill to improve the process for approving short sales was introduced in the House of Representatives yesterday.

The short sale bill proposes imposing a deadline of 45 days on lenders to respond to short sale requests. The legislation – "Prompt Decision for Qualification for Short Sale Act of 2011" – was offered in Congress by Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-N.J.).

"The current short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a home owner from foreclosure," said National Association Realtors President Ron Phipps. "Realtors and consumers continue to raise issues about delays in the short sale process, because lenders are unable to decide whether to approve a short sale."

Phipps added: "After many months of delays, and with no response from lenders, potential buyers are losing patience and cancelling their contracts, often resulting in the property entering foreclosure. A short sale minimizes the negative impact on sellers and generally costs the lender less than a foreclosure."