Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
***RED ALERT FOR NEVADA HOME BUYERS AND REALTORs***:
Thousands of short sales in escrow will be cancelled. Having trouble buying a home? Constantly getting beaten by cash buyers and hedge funds that are buying the home you love only to rent it out? State Bill 321 is set to further devastate the Las Vegas Middle Class by further restricting "the banks".
Middle Income buyers who can finally afford homes again are going to be completely priced out of the Las Vegas Market for good, and I implore you to take a moment to let the Nevada Legislature know that you DO NOT SUPPORT STATE BILL 321. This Bill must not be allowed to pass. Please click on this link, select SB 321, and let NV Legislators Know that WE SUPPORT THE MIDDLE CLASS!
Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
13y
From what I have read in the bill (all 28 pages) as well as what I have gathered from online research is that this is similar to the bill that has decreased CA's inventory. (I am not too familiar with the CA market so this is hearsay) Others have told me that when it went into affect it stopped thousands of short sales that were already in process. In regards to affordability, it will kill the resale market inventory even more so than AB284 already has causing prices on resales to skyrocket. (supply and demand). Here is a link to my thoughts about this bill that I wrote last month: http://lvrealestatehelp.weebly.com/1/post/2013/03/sb-321-proposed-for-nv-on-3182013-thoughts.html
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
13y
It took me a moment to come back to this so I could read the bill and the amendments.
Personally, I disagree with you and do not understand the conclusions you are drawing from this bill. The bill calls for better servicing practices related to Primary Residence foreclosures. May concepts such as dual-tracking are already on the federal table from Dobb-Frank.
A short sale is an alternative to foreclosure. So I would argue the opposite of your view, that the bill should help more short sales take place. A lender can not just foreclose for the sake of foreclosure and must present the borrower with alternatives to foreclosure. The process must be documented and there is a penalty for failure to comply with this regulation.
Perhaps, there was a little down time on transaction levels while Mortgage Servicer made sure their ducks are in a row regarding proper paperwork, however over the long haul, I don't see how this stays shorts sales in really any manner. I don't see this as some way of controlling the inventory. The process creates a greater expense in the foreclosure of a Primary Residence for the Mortgage Servicer and thus the Investor.
Additionally, it is counter-intuitive in my opinion, to say that staying existing home foreclosures somehow helps the price level of new home starts. It is more often the opposite. When greater supply of existing homes are selling for less than the cost of construction, new home starts drop, they do not rise.
The bill is similar to other bills in some states, such as Illinois, which have adopted a similar ruling. That state requires as a function of the foreclosure process, the Mortgage Servicer and Investor to prove that alternative foreclosure concepts were exhausted. Again, this would mean an increase in short sales.
I will admit, sometimes these bills have unforeseen consequences outside of their design but this bill is pretty acute in its focus. As a note investor, I am in favor of cleaning up the servicing food chain to get better and faster results. Having a single point of contact at the Servicer and provided detailed written alternatives will serve to help move more inventory through in alternatives to foreclosure.
Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
13y
Dion I strongly disagree with several of your points. I am on my phone now. I will reply in more detail when I get to a computer but this bill will not help inventory increase it will decrease it. Prices will go up due lower supply...new homes will also be built due to this lower inventory.
