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  On May 13, 2013 I wrote to you about the Nevada Homeowner’s Bill of Rights.  The link is here.

Short Sale – “Dual Tracking” and the Homeowner’s Bill of Rights in Nevada May 2013

Tomorrow October 1, 2013 it becomes law.  You can review the law by clicking the post above. As a reminder here are some bullet points that affect sales:

TO WHOM DOES IT NOT APPLY, YOU ASK?

(a)    Notice that these additional restrictions apply only to a notice of default and election to sell which is recorded on or after October 1, 2013.

(b)   Lenders with less than 100 foreclosures per year, are exempt.

(c)    A lender that complies with United States of America et al. v. Bank of America Corporation et al., is exempt from these provisions.

UNIQUE EFFECTS OF THE  LAW

Duel Tracking Prohibited.  Prohibits the lender  from continuing the foreclosure process while an application for a foreclosure prevention alternative is pending (short sale). (Section 13).

Arm’s Length Not Required. Sec. 16.5. declares a short sale cannot be denied based upon the . No provision of the laws of this State may be “non arm’s length,” in other words, if you relative buys the property, that cannot be the reason for lender denial.  This is big point, the exact language if a lender asks for it is “Sec. 16.5. 1. No provision of the laws of this State may be construed to require a sale in lieu of a foreclosure sale to be an arm’s length transaction or to prohibit a sale in lieu of a foreclosure sale that is not an arm’s length transaction.” That’s found on page 17 of Nevada Senate Bill 321.

Single Point of Contact. The Lender must provide a single point of contact for a borrower who requests a foreclosure prevention alternative (short sale).

Notice of Information. At least 30 calendar days before recording a notice of default and election to sell and at least 30 calendar days after the borrower’s default, the lender must provide to the borrower information concerning the borrower’s account, the foreclosure prevention alternatives offered by the lender and a statement of the facts supporting the right of the mortgagee or beneficiary to foreclose.

Rescission of Notice of Default.  Any notice of default and election to sell recorded must be rescinded, and any pending foreclosure sale must be cancelled, if:

(a)    The borrower accepts a permanent loan modification

(b)   A notice of sale is not recorded within 9 months after the notice of default and election to sell is recorded

(c)    A foreclosure sale is not conducted within 90 calendar days after a notice of sale is recorded.

Did you catch that? A foreclosure has to start over, including new recording of notice of default, if the foreclosure does not take place if 1.) a notice of sale is not recorded 90 days after the notice of default and then the next deadline is 2.) if the foreclosure does not take place 90 days after the notice of sale.  That will be interesting.

$50,000 Penalty. If a Court finds a lender in violation of this law, the Court can order and award to the borrower the greater of treble actual damages or statutory damages of $50,000.

Alright, that should make it fun until Christmas 2013 at least.

OTHER SHORT SALE POSTS

7 Tips for Short Sale

Addendum to Short Sale Listing 1.26.2010

Advance Fees Continued and the FTC 1.6.2011

Advance Fees – Short Sales – FTC II 5.4.2011

Charging for negotiating short sales/Negotiators 10.1.2010

Deficiency Judgments Nevada 4.27.2007

Foreclosure and the One Action Rule in Nevada 4.10.2007

HAMP the Federal Shortsale Program coming April 2010

HUD Suspends Pending Dual Agency Limitation – Short Sales 9.26.2013

Income Taxes & Foreclosures/Shortsales 12.21.2007

Income Taxes & Foreclosure/Short Sales 2013 Update

IRS PUBLICATIONS shortsales/foreclosures:

Ten Facts about Mortgage Debt Forgiveness

IRS publication on how 1099 taxes are calculated, exempt, etc.

IRS explanation as to taxes resulting from Foreclosure and Debt Cancellation.

Judicial Foreclosures (Short sales are looking more attractive..) 3.23.2012

Lender Short Sale Approval Addendum

Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale

Nevada Short Sale Documents

Seller Being Released From Liability Language in Shortsale

Seller Liability After Short Sale 4.20.2007

Short Sale Advanced Fees

Short Sale Addendum to Purchase Agreement October 2010

Short Sales and Bankruptcy and Waiting Periods 10.5.2012

Short Sale Junior Lien/Senior Liens Rights To Sue & Other Changes

Short Sale Wallet Size Answer Sheet

Questions? email me darren@dwelshlaw.com

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