According to data released by Ticor Title of Nevada for March 2013, the number of Notices of Default (NOD) reached its highest level since October 2011 and the start of AB284. Notices of Default are the first filing completed by a bank or lien holder when a borrower has not paid their mortgage. We saw these notices drop off to only 13 in October of 2011 due to the Nevada Assembly Bill 284 which placed new restrictions on banks and the foreclosure process. In March 2013 there were 259 Notices of Default (NOD) filed. This is the highest level of NODs filed since October 2011. Prior to AB284 we saw 400-600 NODs being filed each month.
What does this mean for homeowners who are behind on their mortgage payments? The banks are sending a clear message that borrowers who are unable to pay their mortgage should act now to avoid foreclosure. If you are a borrower who has been unable to make your payments and waiting to see if the bank will act, the message is now may be the time to act. Increases in NOD filings indicate that the banks have worked through the legal issues involved in AB284 and the National Mortgage Settlement and now have the documents and the legal comfort level to move forward to deal with delinquent borrowers.
Banks are foreclosing. There were 223 Notices of Sale (NOS) filed in March. The NOS is the second step in the foreclosure process telling the homeowner when their property will be sold at foreclosure auction. Once a property is auctioned at the court house a Trustee’s Deed is filed. In March 93 homes were sold at the court house. Both the number of NOSs and Trustees Deeds filed in March was the highest we have seen May and June of last year when the banks were still clearing out pre-AB284 inventory.
If you are behind on your payments and considering options to foreclosure, a short sale may be a good option for you. Now is the time to act. As you have probably heard some short sale can take months. With the banks turning up the heat by increasing foreclosure activity you may be running out of time. In addition, the Mortgage Debt Forgiveness Act which eliminates the tax liability of debt forgiven in a short sale for many borrowers expires at the end of this year. Call me today for information on how you may be able to avoid foreclosure by doing a short sale.