Nevada AG calls for foreclosure moratorium
Nevada Attorney General Catherine Cortez Masto has asked banks and lenders to place a moratorium on foreclosures in her state temporarily in light of the robo-signing controversy.
The AG's office said Monday that a letter went out to all banks and mortgage companies who have provided mortgage loans to Nevada residents.
Although foreclosure filings in Nevada are not done through a court of law, the AG's office said it wants to ensure that proper safeguards are in place before a foreclosure proceeds.
The AG said it sent a letter to Bank of America and all other banks and lenders making mortgages in Nevada seeking a moratorium on all foreclosures, evictions and REO sales until lenders meet with the AG's office to discuss processes and operations used in default servicing of Nevada clients, the AG's office told HousingWire.
Although it is a nonjudicial state, certain foreclosure documents must still be filed with the appropriate county recorder. The "filings still rely on an internal review process to ensure proper chain of title and other safeguards," the letter said.
"Similar questions and issues regarding the accuracy of judicial foreclosure affidavits taint the entire process and create a negative presumption concerning the accuracy of any representations made in (foreclosure) documents."
The letter is dated Oct. 7.
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