Nevada foreclosure fraud law takes effect Oct. 1
Nevada's new foreclosure fraud reform law takes effect Oct. 1, enhancing the Nevada Attorney General Catherine Cortez Masto's enforcement authority over foreclosure fraud.
On May 20, Nevada Gov. Brian Sandoval signed Assembly Bill 284 into law. The law now requires homeowner access to information on the companies holding their mortgages.
The bill intends to do this by requiring any documents used in the foreclosure process are also recorded in the local office of the county clerk.
In addition, the law requires a foreclosing party to record a notarized affidavit of authority to foreclose, including all the information needed to ensure the party has a legal right to foreclose on the property.
"Assembly Bill 284 will protect the Silver State’s housing market by ensuring homeowners and prospective purchasers can get a clean chain of title and are treated more fairly," said Cortez Masto.
According to RealtyTrac, foreclosures make up a large portion of Nevada's housing market.
Foreclosure-related sales accounted for 65% of all residential sales in Nevada during the second quarter, the highest percentage of any state, said the second quarter U.S. housing report from the foreclosure tracking firm.
Additionally, RealtyTrac finds third parties purchased a total of 15,685 homes in foreclosure or bank owned in Nevada during the second quarter, up 24% from the first quarter and up 31% from the second quarter of 2010.
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