SENTATE BILLS 284 AND 414
On April 25th, Assembly Bill 284 passed the Nevada State Assembly and is now headed to the Nevada State Senate. The bill, drafted by Tisha Black Chernine, Managing Partner of Black & LoBello, would help to give more transparency to the foreclosure process and hold the foreclosing parties more accountable for their actions.
Assembly Bill 284 is a response to robosignings, in which low-level employees of loan servicers signed affidavits that made incorrect claims about complicated matters. The people signing the affidavits often didn’t understand the documents or had not taken time to verify the facts. As a result, some houses have been wrongly foreclosed upon, analysts said. The bill requires a home mortgage lender to file documents when the lender sells a mortgage loan. The documents must be filed within 60 days in the county where the property is located according to the Review Journal.
Senate Bill 414, which was sponsored by the Senate Commerce, Labor and Energy Committee, deals with short sales, in which lenders agree to let homeowners sell homes for less than the amount owed on the mortgage.
The bill requires a bank or credit union to disclose whether it will waive its right to seek a judgment against the homeowner for the deficiency, or difference between the sales price and the mortgage balance. “It brings certainty to the borrower and whether he can have closure and move on,” Black Chernine said. Also, the financial institution must tell the seller the amount owed.
The protection applies only to mortgages used to buy single-family homes, not those obtained for refinancing, and to borrowers who continuously lived in the home after getting the mortgage states the Review Journal.