by Calculated Risk on 11/07/2011 10:14:00 PM
Monday, November 07, 2011
From Nick Timiraos at the WSJ: Nevada Foreclosure Filings Dry Up After ‘Robo-Signing’ Law
Foreclosure filings in Nevada plunged in October during the first month of a new state law stiffening foreclosure-processing requirements.BofA uses ReconTrust, a wholly owned subsidiary, to handle foreclosures. With this new law, BofA will have to use another trustee.
Nevada’s state Assembly passed a measure that took effect on Oct. 1 ... the Nevada law makes it a felony—and threatens to hold individuals criminally liable—for making false representations concerning real estate title. Individuals are also subject to civil penalties of $5,000 for each violation.
The Nevada law makes an important technical change to those rules by forbidding trustees from handling foreclosures if the trustee is a subsidiary of foreclosing bank.
According to DataQuick, foreclosure resales were about 56% of the Las Vegas market in September - and this probably means Nevada existing home sales will decline sharply in October. Foreclosures will probably pick up again once the lenders feel they are complying with the new law.
Posted by Calculated Risk on 11/07/2011 10:14:00 PM