While foreclosure crisis is still prominent in some parts of the country, Nevada is not hit by this crisis, seemingly. In fact, in the first half of 2013, Nevada has the highest foreclosure rate in the country, just behind Florida.
Foreclosure issue has always been plagued with one problem. The lenders have never presented the homeowners with any great loss mitigation opportunity so this total foreclosure issue could be avoided. Thanks to the Homeowner’s Bill of Rights, passed on June the 3rd, by Governor Brian Sandoval, homeowners’ interests now are better protected when it comes to foreclosure.
The Bill at a Glance
Homeowner’s Bill of Rights targets one thing and that is better protection of homeowners’ interests in the state of Nevada. It includes better services when mortgage loans are defaulted and when the loss mitigation process must take place.
The Features of the Bill
This bill adds several layers of protections for the struggling homeowners in the state of Nevada, especially those who are facing foreclosure. Few key features of this bill are
Notice to Distressed Borrowers
At least 30 days before the borrower defaults and at least 30 days before the judicial foreclosure action is being started, the lender must serve a legal and written notice to the borrower. This notice must contain
- All the major information’s of the borrower’s loan account including total payable amount, immediate payment amount, last date of payment, principle balance and a direct communication channel for any clarification.
- What the borrower can do to avoid this foreclosure
- contact details of housing counselling agencies
- why the lender is justified in foreclosing the deal
Discuss With The borrower
Not only legal printed words of advice to the borrower to avoid the foreclosure but the lender must speak to the borrower either personally or by telephone to explain in details how the borrower can avoid the foreclosure. This, again, must be done 30 days before the foreclosure process is about to begin. Although if he fails to get in touch after verifiable efforts, he can proceed with the process.
Loss Mitigation Requirements
If the borrower submits any loss mitigation letter to the lender, the lender is bound to follow a few steps.
- The lender must acknowledge the letter within five working days.
- He should either present the borrower with a foreclosing avoidance proposal, or
- Deny the borrower in written within 30 days from the application submission date, citing proper reasons. These 30 days will be counted when the applicant submits the complete application form, including all the documents which the lender desire to check.
- The lender is not bound to entertain the loss mitigation application only under one condition, if the borrower has had any previous chance of foreclosure alternative evaluation and was treated in a fair way.
Dual Tracking Disallowed
Dual tracking is the unethical process in which a foreclosure process is started while a loss mitigation application from the same borrower is pending. This bill has explicitly prohibited that. This simply means, if any loss mitigation application is pending, the lender must accept or deny the same before proceeding with the foreclosure process.
For the homeowners, this translates into a breathing space. If they have applied for a loss mitigation, they now can know that the foreclosure process will not be started before the loss mitigation application is processed, evaluated and they are informed of the outcome. Even if it is rejected, the homeowners will still have 30 more days before the foreclosing starts.
All in all, it looks like there is a new beginning of hope for the struggling homeowners in the state.
Author Bio: The Aiello Law Firm committed to providing our clients with superior legal service with integrity, and giving each client the attention they deserve. For legal advice and guidance on starting a contact our attorneys at (702) 318-8818 today.