Focus on Government Affairs – Short Sale Complaint Process

Per legislation from 2008, it is now Indiana state law that a lender must acknowledge a short sale offer within 10 days of receipt and accept or reject the offer within 30 days of receipt.

 

Since then, the complaint process has been very simple: file a complaint online with the Indiana Department of Financial Institutions (DFI). The DFI can then watch for patterns with certain lenders and use regulatory authority to investigate.

However, as this law has evolved, other statutory authority has been discovered to pursue those in violation of the short sale law. Recently we heard from the Homeowner Protection Unit of the Attorney General. They, too, have enforcement authority over the complaints.