The Case For Assembly Bill 284 — Added Steps (and fines) for Banks Before Foreclosing on a Property

by Joe Salcedo on 2:07 am

Nevada Assembly 284

There has been a lot said about the controversial Assembly Bill 284 — a law that makes it harder for banks to foreclose on a home.  To be clear the bill is not preventing banks from taking ownership on a delinquent property.  Rather, it’s a few added steps for the banks to fulfill before foreclosing on a property.  The fine goes up to $1,000 (from $500 — if they don’t remove the deed of trust against the person) and instead of a misdemeanor you get a felony  (false representation concerning title).  And yes, it will get a bit harder for banks to foreclose on the property.

A bloke in Vegas gave an interesting take on the bill:

So, one of the things that they said was well, if the bank say Wells Fargo, Forecloses on a house, and in the meantime they had sold the note, that has to be recorded. That’s an assignment, they have to record that assignment. That’s all that’s saying is you know, you have to record that assignment. So, that’s a new thing, that’s a different thing. And that’s before you can file the notice of default. You just have to make sure you’ve recorded that. So they could still file a notice of default tomorrow. They just have to/ before they file that say “Oh by the way, we assigned to this, then this person assigned it to this,” and then you notarize that, and then they can file the notice of default.

You can turn this bill round and round but it’s a bill that will benefit a lot of struggling home owners (fair or unfair? I leave that to you my dear reader; I’m keeping my silence).   One thing this bill will most likely do…give more time for struggling home owners to stay at their house for free.

A lot of real estate pundits have expressed criticism:

RGJ: Like a bogeyman lurking just behind the corner, shadow inventory has been a nagging concern for the Washoe County housing market since the real estate bubble’s collapse.

Now a delay in processing distressed properties is bringing shadow inventory back to the forefront, which experts say could postpone a housing recovery in the area by two to three years.

*(The  article got a good drubbing by Reno Real Estate Blog)

Vegas INC: Banks have stopped filing new foreclosure notices in Nevada, but that doesn’t mean the housing crisis has passed.

In fact, bankers say a new law that took effect in October has put bank foreclosures on hold and is preventing the Las Vegas housing market from finally hitting bottom and “returning to normal,” Bill Uffelman, president of the Nevada Bankers Association, said.

And lastly, by this guy

And yes, the banks have pulled back on releasing foreclosure inventory..but is that really the bill’s fault? Or are banks reorganizing…finding the best possible way to starting making money to recuperate “losses”.

Comments on this entry are closed.

Previous post:

Next post:

“Joe’s your man if you need someone to trust. Joe Salcedo is a hard working Realtor. Joe is very professional and will go the extra mile.”

– Philip Duane Johncock


“I was laid off from the state in November of 2007 due to major budget cuts. We were no longer able to make our house payments as the job market was just beginning to get worse and worse. My agent in San Jose found Joe Salcedo in Reno for me and told me he has a lot of experience in short sales. He priced our home at a very realistic price in relation to the market values at the time. Joe was very professional and before we knew it we had an offer on our home. In September of 2008 our home closed and the bank forgave the difference. A short sale comes off of your credit in a much, much shorter time than a bank foreclosure. We will be forever grateful for the assistance of Joe Salcedo”

– James and Marsha McGinnis (feel free to call for a reference, Joe has my number)

  • FREE Short Sale Guide:
    Learn about options for distressed owners, what to expect in a short sale, hardship letter samples, etc.,

    powered by MailChimp!