Effective July 1, 2011 changes to Nevada deficiency laws and short sale laws laws regarding debt collection is located here =====>Short Sale Junior Lien Holder Rights & Other Changes
UPDATE April 16, 2011. This matter did not make it out of committee on April 16, 2011. No further action can be taken.
The Nevada Legislature (Senate Judiciary Committee) on Tuesday March 29, 2011, discussed a proposed law that would eliminate liability for many residential loans after a shortsale or foreclosure. Also the current proposed law would be retroactive. The current version of the Bill would protect debtor’s as to their primary residence, not investment property. Click here to read the Bill SB 346.
SB 346 would end the deficiency debate. Loans would be retroactively modified so a borrower would be protected from deficiency judgments, whether the borrower was involved in a short sale or foreclosure.
The bill has not left committee yet. If you are interested, you can track the Bill by clicking … here.
The Bill has to make it out of Senate Judiciary Committee to get a vote on the Senate Floor. The deadline is this
Friday April 15, 2011 for the bill to pass out of the committee, otherwise it just goes away. The Senate Judiciary
Committee is made up of the following Senators:
- Valerie Wiener – Chair – vwiener@sen.state.nv.us
- Allison Copening – Vice Chair – acopening@sen.state.nv.us
- Shirley A. Breeden – sbreeden@sen.state.nv.us
- Ruben J. Kihuen – rkihuen@sen.state.nv.us
- Mike McGinness – mmcginness@sen.state.nv.us
- Don Gustavson – dgustavson@sen.state.nv.us
- Michael Roberson – mroberson@sen.state.nv.us
This is part of my short sale series listed below in alphabetical order:
Addendum to Short Sale Listing
Charging for negotiating short sales/Negotiators
Foreclosure and the One Action Rule in Nevada
HAMP the Federal Shortsale Program coming April 2010
Income Taxes & Foreclosures/Shortsales
Lender Short Sale Approval Addendum
Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale
Seller Being Released From Liability Language in Shortsale
Seller Liability After Short Sale
Short Sale Addendum to Purchase Agreement October 2010
Short Sale Wallet Size Answer Sheet
IRS PUBLICATIONS shortsales/foreclosures:
IRS publication on how 1099 taxes are calculated, exempt, etc.
IRS explanation as to taxes resulting from Foreclosure and Debt Cancellation.
Ten Facts about Mortgage Debt Forgiveness
Questions? Call me. Darren Welsh, Esq. 702 245 1787 email me darren@dwelshlaw.com or drop me a TPS by filling out this form
April 11, 2011 at 2:12 pm
It would be interesting to find out how this plays out.
April 11, 2011 at 2:22 pm
If that passes, no lender is going to want provide mortgages in Nevada.
April 11, 2011 at 9:47 pm
This is a really REALLY bad precedent. In effect, the legislature is changing the terms of the original loan to which all parties, including the borrower, agreed. If contractual agreements can be changed at the whim of the courts, why would anyone want to loan money? What is to stop them from legislating next that anyone who owes more than their home is worth is entitled to a principal reduction?
But this could apply to any contract. What if the courts should decide that just because you decide to stop making payments on your car, the lender is not entitled to repossess it because it is your only means of transportation to work? The auto industry would come to a screeching halt. As a tenant you can’t pay your rent? No problem, we’ll just pass a law that lets you stay rent free, regardless of what your lease says.
It is one thing to change a law governing contracts entered into from a certain date forward, but it is quite another to make retroactive changes to the detriment of one of the parties who entered into that contract in good faith. This kind of thinking undermines the principles on which our entire country was founded.
April 14, 2011 at 12:11 pm
This is the most repulsive thing these idiots in Carson City have concocted yet. How could you even think of rewarding DEADBEATS for not meeting their financial obligations? A house is an investment. No investments are guaranteed. Not every person deserves to own a home.
Yes the banks had a hand in this situation, but nobody forced the borrower to sign the loan. If a borrower is too stupid to understand that a loan must be paid back then we do not need them in this society.
These deadbeats should be pursued until the debt is paid in full. And NO public assistance whatsoever until all monies are repaid in full. Why should those of us who pay their obligations properly be burdened with those who do not?
NO REMORSE FOR DEADBEATS!
Allow a debtors prison. This would stop all this nonsense. Fund it by taking the money Uncle Sam gives to the banks as a reward for foreclosing on houses. I know it is against the constitution but after all the IRS is allowed to do it….
NO REMORSE FOR DEADBEATS!
May 6, 2011 at 10:36 am
Bottom line Darren, Can we still use the retainer fee agreement? Can we still collect rretainer fees? Will you protect us from the evil forces that are trying to take well deserved money from our pockets?
Dan