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Help For Nevada Short Sales

Nevada homeowners who find themselves facing the loss of their homes received good news recently.  Governor Sandoval signed into law Senate Bill 414, which regulates how lenders must approach short sales.

If you are currently involved in a short sale and your approval letter is dated after July 1, the lender may no longer pursue you for the deficiency – that is, the difference between what the bank receives from the sale of your house and the amount owed on the promissory note – if you did not refinance at any time while you owned the house.  If you did refinance and the bank is reserving the right to pursue you for the deficiency, the letter must state specifically the dollar amount the lender will be seeking from you.  Of course, if you have a good Realtor working for you on the approval, you should be able to get that deficiency waived.

This Bill also addresses the amount of time a lender may take to respond to a short sale request.  It makes it a misdemeanor for a lender to take more than 90 days to accept or reject a short sale offer.  For me this brings to mind images of local bank managers being arrested.  Lenders should start preparing for manager-less banks, since I’m sure virtually every bank in Las Vegas is guilty of this “crime.”  You may have heard about the Florida lawsuit in which a couple had their home foreclosed upon by Bank of America, even though they did not owe any money on their home.  They sued Bank of America, got a judgment and when Bank of America didn’t pay up, their attorney went to a bank branch and started taking money, office equipment, fixtures, etc. to pay the judgment.  Needless to say, the plaintiffs had their money the same day.

I just received my first short sale approval since the law was passed.  It states that the borrower remains liable for any amount still owed under this mortgage transaction, except as otherwise prohibited by applicable laws.  This is the first time I have seen this language in an approval letter.  We’ll be having an attorney review the letter to determine the borrower’s position and make certain he will not be pursued for the deficiency.

If you would like to read the bill, here’s a link to .


If you have any questions or concerns about the short sale process, drop us an email at

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