Assembly Bill 284, which went into effect on October 1, 2011, has helped in drastically decreasing the rate of foreclosure activity in Nevada. For those unfamiliar, AB 284 constricts the foreclosure process by increasing lender requirements, such as providing extensive documentation and a sworn affidavit from the foreclosure Trustee that they are holding or must have constructive receipt of the actual note. With the mass amounts of electronic filing, storage, and transmission occurring in today’s society, this is often difficult for the servicer to obtain.
In essence, while this new law helps homeowners stay in their homes longer in the short-term, consequently, the impact this law creates for the long-term remains uncertain. Despite banks being held more accountable, an undoubtedly positive outcome, how does this bill really affect the state of Nevada and its residents? Should we continue to allow homeowners to stay in their homes for extended lengths of time, even if they are unable to make payments? Or should we carry on and let the process work for itself? What are your thoughts?