As one of the hardest hit areas by the foreclosure crisis, Nevada has faced its fair share of housing market challenges. Sky high foreclosure rates and plummeting home values have brought tough times for Nevada homeowners. However, a recent law has helped to slow the foreclosure rate in hopes of helping the local housing market have a chance.
Assembly Bill 284
Back in October of 2011, the Nevada state Senate passed a bill that makes it a felony for lenders to foreclose on properties without taking certain measures first. In order for a foreclosure to be considered lawful, the lender must prove that they are the rightful owner to the mortgage loan. The lender must attached legally notarized paperwork to the foreclosure filing in order to demonstrate rightful ownership of the loan.
This law comes in efforts to combat the problems that have been plaguing the housing market for the last few months. Lenders have engaged in actions such as “robo-signing” and loan sell-offs. The new law was approved by Nevada state lawmakers after it was determined that many banks and mortgage lenders were illegally foreclosing on homes..