A new piece of legislation that would require lenders to respond to consumer short sale requests within 45 days is being strongly supported by the National Association of Realtors (NAR).

The "Prompt Decision for Qualification of Short Sale Act of 2010" bill was presented before Congress on Wednesday.

"The short sale, which requires lender approval, is an important instrument for homeowners who owe more than their home is worth," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Assoc. in Tucson, Ariz. "While the lending community has worked to improve the size and training of their short sales staffs, they still have a long way to go on improving response times."

The number of potential short sale properties is rising across the country, according to a statement.

"Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time," said Golder. "Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives."