Word is that the federal government will soon be coming out with guidelines meant to standardize and streamline how short sales work.

For the record, nothing could make most real estate agents (and short sale buyers and sellers) happier than a better process.

Unfortunately, I have absolutely no faith that it will happen. The guidelines, like most of the government plans around foreclosures thus far, is going to take a carrot approach, with incentives for banks to cooperate. I'd be willing to wager a fair amount of money that the banks could care less about any incentive offered. The money involved is likely to be miniscule from the banks' perspective.

Let me also say that I'm a little offended by the concept. So these banks have billions of our tax dollars to save them from their own stupidity (and to keep us from going over the cliff with them) and now we have to bribe them to play nice?!

Seems to me California has a better idea here. They've passed new regulations that a bank that has gotten all the documents on a short sale, including the draft HUD1, must produce an answer in four days! And, if they don't there are penalties.

To give you some sense of perspective, if I get a response from a lender within 6 weeks, I do a dance of joy! Everyone has stories of banks that didn't respond for well over four or five or six months!

There has to be a better way. And I'd love to believe that the Federal Government is about to roll that out. I'm just not that gullible any more!