The Nevada legislature sent two bills to Governor Sandoval for signature which will provide great relief to homeowners who must sell their houses for less than the mortgages owed on them (a short sale).
SB 414 makes it a misdemeanor for a bank to unreasonably delay responding to a short sale offer. It spells out that acceptance or rejection of an offer should be received within 90 days. It also prohibits a bank from getting a deficiency judgment if they agreed to a short sale (under certain circumstances).
About those deficiency judgments…AB 273 is also with the Governor for signature. This is the bill that will prevent banks from “double-dipping” and going after the borrower for the full amount of the deficiency when they have received compensation from other sources. It will cap the amount a third party can be awarded if they bought the right to the deficiency for pennies on the dollar. Finally, it will reduce the amount of time a junior lien holder has to file for a deficiency from the current six years to six months, to be in line with primary lien holders’ timeframes.
Both these bills will help homeowners and their Realtors obtain short sale approval in a more timely fashion and limit the threat presented by deficiency claims. As more information on these bills is available, we’ll pass it along.
In the meantime, if you would like more information on foreclosure alternatives, contact us at LasVegasHomeSpecialist.com.