New Nevada Law Puts Brakes on Foreclosure Notices Filed in Las VegasPosted by Paul Francis on Thursday, November 17th, 2011 at 10:43am.
Effects of Assembly Bill 284 Now Evident
Well... it's been over a month since AB 284 went into effect and the numbers are out. Check out the updated chart showing the big drop in Notices of Defaults filed in Las Vegas for October of 2011.
What is AB 284?
The simplest article I've read explaining it can be found here.
Besides the basic new requirements, take note of the following statement:
"Failure to comply is subject to a civil penalty, and the penalty to make false representations concerning property title was increased from a gross misdemeanor to a category C felony."
That should certainly make Robo Signers think twice such as the ones that were recently indicted in Nevada for 606 counts of Robo Signing.
What does it mean for the big picture for Las Vegas Real Estate?
There is a going to be a backlog of properties in the foreclosure process where homeowners have not been paying their mortgage. The servicers will eventually figure out the new law, comply with the guidelines and continue on with foreclosure proceedings. It's not like everybody is all of a sudden going to come up with the money to pay their mortgages when they are already so buried underwater. You can check out this post to see just how buried Las Vegas homeowners are when it comes to equity.
There are several ways to look at this news and play accordingly and I'm really not going to get into detail about that right now. What I will say is that the number of Bank Owned Properties in Las Vegas available for sale does appear to already be dropping significantly from searching around on the Las Vegas MLS for clients. (It's obvious in the areas that I specialize in.) I'm not sure if it's from the foreclosure moratorium that was put in place late 2010 and just now showing up but I suspect it is.
I'll be updating my Las Vegas Bank Owned Report later this evening. It's probably still too early to see the significant drop everybody is expecting on the horizon.
Will Las Vegas Short Sale Sellers Benefit?
I would say with 100% absolute certainty they will. Experienced Las Vegas Short Sale agents know that we are always competing with the bank owned properties available for sale since they are preferred over short sales by buyers and their real estate agents. Mainly due to the time process involved in getting a short sale approval. Even when the price is approved, the servicers can still take months to approve the actual buyer for whatever reasons. In other words.... just because a home available for sale might say "Approved Short Sale" does not mean it's going to be closed in a somewhat traditional time frame of 30 days.
The inventory for Bank Owned Homes available for sale in Las Vegas is certainly going to artificially drop. All of the savvy Las Vegas real estate agents know it.... which means that Las Vegas short sales are going to get more attention from buyers. Just like back in early 2010 when the first time homebuyers tax credit was in place. I was all of a sudden getting multiple offers and being able to choose solid buyers on my Las Vegas short sales when the bank inventory dried up.
So.... for Las Vegas homeowners who have been thinking about doing a short sale, it might be a great time to get ready to take advantage of the potential scenario that's going to be taking place.
Prudential Americana Group, REALTORS
Las Vegas Short Sales