The new Nevada ” Robo-signing Law” has apparently had some real unintended consequences. Banks are reluctant to foreclose and it also appears that sellers, especially those with delinquent loans, are reluctant to do much of anything.
Assembly Bill 284 took effect Oct. 1, 2011, making it a felony if a mortgage servicer or trustee made false representations concerning a title. There also will be a $5,000 fine assessed if fraud, such as robo-signing, is detected. The new law requires servicer to provide a new affidavit that provides the amount due on the mortgage, who is in possession of the note and who has the authority to foreclose. The possession of the note will need to be actual or “constructive”, whatever constructive means and believe me, no one seems to know, or at least can tell me. The net result is that nothing much is happening other than a few homeowner’s associations foreclosing.
As of 7/17 there were only 454 foreclosures listed for sale in the Las Vegas area. Considering we have led the nation in foreclosures and are still leading the nation in delinquencies, that number is way too small. Even short sale listings are down with a total of 1127 currently listed. This extremely low inventory has resulted in an only a modest increase in prices. The good deals are still there, but are much harder to find presently.
