The 76th Legislative Session adjourned on June 7th, and we want to share with you some of the more important bills that concern the real estate industry and therefore, may affect you as a property owner.
AB273 – Passed/Became Law
NRS 40.455 states that the holder of a mortgage can sue to collect a deficiency within 6 months after the foreclosure sale or trustee sale. The new law, AB 273, states that a holder of a second mortgage must sue within 6 months for deficiencies resulting from a foreclosure sale, trustee sale, short sale or deed in lieu of foreclosure. This is how the laws work together:
- First mortgage loans – Deficiency collection lawsuits must be filed within six months after a foreclosure sale.
- First mortgage loans – Deficiencies can only be collected on first loans taken out BEFORE October 1, 2009. First loans taken out after that date are non-recourse loans.
- Second mortgage loans – Some collection lawsuits must be filed within six months. The six month limit on deficiency collections only applies to foreclosure sales, trustee sales, short sales and deeds in lieu of foreclosure that are sold or have sales closed AFTER July 1, 2011.
- Second Mortgage loans – Deficiencies can only be collected on second loans taken out BEFORE June 10, 2011. Second loans taken out after that date are non-recourse loans.
Note: New laws do not impact First mortgage loans for short sales – unless the deficiency judgment is successfully negotiated in the short sale, the lien holder has 6 years to pursue a deficiency judgment after a short sale.
SB 414 – Passed/Became Law
This bill does two main things:
- It prohibits a banking or other financial institution from unreasonably delaying its response to an offer for a short sale on real property secured by a residential mortgage loan. It makes it a misdemeanor for the bank to unreasonably withhold short sale approval, and spells out that acceptance or rejection of an offer should be received within 90 days.
- It also prohibits a bank from getting a deficiency judgment if they agreed to a short sale (under certain circumstances). Personally, I am not sure how this can be enforced against out of state banks, etc., but knowing that the law is there could potentially speed up the short sale process.
SB403 will make sure the Demand Letter from the HOA is good for 15 days. It also provides for noticing provisions if the demand changes within the 15-day timeframe.
FOR ALL OF US: DON’T TEXT AND DRIVE!
SB140 prohibits the use of a cell phone effective July 1, 2011 without the use of a hands free devise. You cannot text, IM, or browse the internet. This is considered a primary offense meaning you can be pulled over and cited. Warnings will be given until January 1, 2012 when they will begin issuing citations. So go get that hands-free gadget if you don’t have one already, and no more texting while driving!
This recap was provided by the Nevada Association of Realtors, (NVAR), which provides services to 15,000 REALTORS® throughout Nevada. NVAR is invested in the success of its members by providing services and advocating for private property rights.