A group of U.S. senators recently announced their plan to revitalize the housing market by reducing the length of time it takes to complete a "short sale."

When a seller owes more on a mortgage than a house is worth but finds a buyer, the transaction is called a short sale and must be approved by a bank. The approval process can be lengthy, often taking months, according to a statement from Republican Senators Scott Brown of Massachusetts and Lisa Murkowski of Alaska. They are joined in introducing the "Prompt Notification of Short Sale Act" by Democratic Senator Sherrod Brown of Ohio.

“For most buyers, short sales are anything but. The seemingly endless waiting game associated with short sales represents a dangerous drag on our housing market,” Senator Sherrod Brown said. “If we’re going to recover from the housing crisis, we need to make it easier for qualified candidates by purchase homes."

The new law would require banks to provide a written notification of acceptance, rejection, counter offer or the need for an extension. Delays could result in fines of $1,000 in addition to legal fees, according to the senators.

Short sales could provide some homeowners with a way to get out of upside-down mortgages. Some banks have even begun offering incentives, giving borrowers up to $35,000 for the completion of short sales, according to USA Today.

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