AB 300 Passed!

 Assembly Bill 300 Has Passed.

In case you haven't heard:  effective June 1, 2013,  AB 300 passed.  Obviously this is good news because banks can now pick up the REO pace and help normalize the market.  We've all been eager to see this "clean-up" bill enacted.

What is Assembly Bill 300:

By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL

An Assembly bill submitted in March would modify a controversial requirement that delays real estate lenders from foreclosing on properties secured by a residential loan.

Assembly Bill 300, introduced by Assemblyman Jason Frierson, D-Las Vegas, takes aim at one portion of a 2011 law intended to prevent illegal foreclosures and protect property owners’ rights.

The law currently requires lenders to provide a notarized affidavit of authority to exercise power of sale under a deed of trust. Anyone signing documents on behalf of a lender must have “personal knowledge” of who owns the promissory note on the loan.

The law essentially choked off the foreclosure process in Nevada, reducing default notices from about 4,000 a month to fewer than 1,000 immediately after it took effect in October 2011. Notices of default have since ticked back up to about 1,500 a month.

It also allowed delinquent homeowners to remain in their homes without paying their mortgage, waiting for the bank to schedule a trustee sale, which in some cases takes two years or more.

AB 300 would clarify the “personal knowledge” requirement, Frierson said Friday. It provides that certain information in the affidavit could be based on “direct, personal knowledge” that the person who makes the affidavit obtained from reviewing business records of the beneficiary of the deed of trust and information from the county recorder or title insurance issued by an agent authorized to do business in the state.

“It just clarifies what they’re able to attest to based on personal knowledge,” Frierson said . “Realtors, title companies, bankers and legal aid all came together and said this would satisfy their concerns about personal knowledge.”

Changing the language of Assembly Bill 284 — which became known as the “robo-signing” law — could be the last legal stumbling block holding back foreclosure proceedings in Nevada, real estate agent Mark Rowley said.

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

So what does this mean to you, a Las Vegas Homeowner?  It means banks can start to foreclosure on a homeowner quicker than what they have been able to in the past.  So don't wait to consider short selling your home.  Call Amanda Brown now to get the process started, 702-496-7416!