In advance of the new Home Owner’s Bill of Rights, (SB321) which becomes effective in Nevada next Tuesday, October 1st, banks have raced to start as many new foreclosures as they can before the new law take affect and the bank’s face a more arduous foreclosure process. Since the end of the legislative session in June there were many less Notices of Default (NOD) filed. In June – 14 NODs, in July 74 NODs, and in August – 151 NODs. So far for the month of September 378 Notices of Default have been filed in Washoe County. (Source: Ticor Title).
The Nevada bill, among other things, (i) requires that at least 30 calendar days before recording pre-foreclosure documents or commencing a judicial foreclosure action and at least 30 calendar days after a borrower’s default, the mortgage servicer, mortgagee or beneficiary of the deed of trust must provide to the borrower certain information concerning the borrower’s account, the available foreclosure prevention alternatives, and a statement of the facts supporting the right of the mortgagee or beneficiary to foreclose, (ii) requires that an institution contact, or attempt to contact, the borrower before filing pre-foreclosure documents or commencing a foreclosure, (iii) prohibits dual tracking, (iv) establishes “single point of contact” rules, and (v) allows borrowers in a judicial foreclosure action to elect to participate in a state foreclosure mediation program.
These new requirement have the banks racing to get as many Notices of Default filed as they can prior to the October 1, 2013 start date. Although the bill has many good intentions just as AB284 did several years ago it is yet to be seen the actual affect this bill will have on the real estate market in Nevada.
If you or someone you know are facing foreclosure and would like to know what your options are please contact me and I can direct you to many of the great resources available to homeowners in our area.