Currently, Nevada is at the epicenter of the foreclosure crisis. A little over a year ago, the housing market in cities like Las Vegas was flourishing. It seemed as though overnight the housing market imploded and 1 in 4 homes began to enter foreclosure.
With such a quick decline in the market, many homeowners have been left devastated. In efforts to alleviate effects of the foreclosure crisis a new state law is being passed that will better protect homeowners and prevent lender abuse.
Change Is Ahead
The increase in foreclosures has also brought with it an increase in complaints about the foreclosure process. Many homeowners have stated the law, as it currently stands, does not protect homeowners and is unfair in foreclosure practices. The current law does not require a judge to sign off on an impending foreclosure, leading to unscrupulous lender practices and an increase in foreclosure fraud. Homeowners find it difficult to find out any information about how to prevent a foreclosure or even stop an ongoing foreclosure, such as through bankruptcy or mortgage modification.
Before the end of the year Assembly Bill 284 will place new restrictions on the foreclosure process such as increasing the requirements of lenders that plan to foreclose. Practices such as “robo-signing” will be prohibited. Lenders will now be required to have notaries sign off on documents and file official documentation when they sell off a loan.