Nevada foreclosure starts drop sharply

Nevada foreclosure starts plummeted 81 percent in October in reaction to a new law that imposes stricter requirements on filing notices of default, online listing service ForeclosureRadar.com reported Tuesday.

The law appears to have specifically targeted ReconTrust, the trustee that handles all Bank of America and Countrywide foreclosures, said Sean O’Toole, chief executive officer of Discovery Bay, Calif.-based ForeclosureRadar.

It prohibits a trustee such as ReconTrust from being owned by the foreclosing lender.

“You have one paragraph in (Assembly Bill) 284 that specifically says the beneficiary can’t be the trustee. There’s no other reason to put that in, so yeah, I’d say they were targeted,” O’Toole said.

He finds it amazing that so many people believe that legislation and lawsuits targeting the foreclosure process are good for homeowners.

“The reality is these delays help the banks by allowing them to keep bad loans on their books at inflated values, while leaving in limbo the millions of homeowners that are already in default,” O’Toole said. “The housing market will not recover until we move beyond these delay tactics.”

ForeclosureRadar showed 1,025 notices of default for Nevada in October, down 81.5 percent from the previous month; 2,270 foreclosure sales, a 10.7 percent increase; and foreclosure time frame of 377 days, up 0.3 percent.

CLARK COUNTY NUMBERS

In Clark County, notices of default fell to 897 in October, compared with 4,656 in September and 5,417 in the same month a year ago. Notices of trustee sale declined to 3,296, a 7.5 percent decrease from the previous month and 30 percent decrease from a year ago.

Notices of default are the first step in the foreclosure process. Notices of trustee sale set the date and time of an auction and serve as the homeowner’s final notice before the sale.

Clark County’s inventory of real estate-owned, or bank-owned, homes declined to 11,081 in October, down from 11,589 in September and from 11,573 a year ago.

LAW AIMED AT ROBO-SIGNINGS

Assembly Bill 284, introduced by Assemblyman Marcus Conklin, D-Las Vegas, requires a lender seeking to foreclose in Nevada to record a notarized affidavit of authority to foreclose that includes information showing that they have the legal right to exercise the power of sale.

The new law protects homeowners from improper foreclosures and protects the integrity of the homeownership system, Nevada Attorney General Catherine Cortez Masto said. It was crafted largely in response to the robo-signing scandal that surfaced last year.

The law also gives Nevada homeowners access to data on companies that hold their mortgages by requiring that documents used in foreclosure be recorded in the county where the property is located, a challenge to the Mortgage Electronic Registration System, or MERS.

The foreclosure process needs to work its course, said Victor Joecks, communications director for Nevada Policy Research Institute. While he couldn’t address the specifics of AB 284, Joecks said Nevada’s mandatory foreclosure mediation and other forms of government intervention have only set the process back.

Homeowners who bought into the “bubble market” in Las Vegas and can no longer afford their mortgage payments are going to have to get out of those homes, Joecks said. Values will drop and eventually someone else buys the home, and only then will values start to increase again, he said.

‘JUST A SPEED BUMP’

“Some Realtors feel the world is coming to an end because the foreclosure process will take forever while others feel it’s just a speed bump and things will be fine in a month or so,” Tim Kelly Kiernan of Re/Max Extreme said. “I met with my Bank of America contacts and they say it’s also just a speed bump. Who knows? Patience is a virtue I guess.”

O’Toole said the intent of the Nevada law is that good and banks should be held accountable for their actions, but letting homeowners go without paying their mortgage won’t solve anything, he said; it will hurt their credit and hurt the overall economy in the long run.

“I’ve said a million times I understand why people are mad at the banks,” O’Toole said. “Unless politicians come up with a solution to fix negative equity, then adding more regulations and requirements will cause delays that do more harm than good.”

Contact reporter Hubble Smith at
hsmith@reviewjournal.com
or 702-383-0491.

ad-high_impact_4
Business
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like