With Nevada having the highest number of foreclosed houses and bankruptcy properties for sale in the whole U.S., any form of relief, even temporary, is worth exploring. At least, according to some legislators and members of the real estate industry.
Recently, U.S. Senator Harry Reid has called on mortgage loan servicing firms to put on hold proceedings on Las Vegas home foreclosures and statewide foreclosures. According to Reid, servicers should temporarily halt proceedings against state property owners until a system has been put in place that will ensure that foreclosure processing is being done properly.
The request from Reid came after several mortgage companies made the announcement that they have temporarily suspended some of the foreclosures they are handling, including those related to foreclosed homes in Nevada. These firms include Bank of America, JPMorgan Chase and GMAC.
Allegations that people buying foreclosure are actually sometimes getting homes that were foreclosed on without proper examination of documents led to massive complaints from homeowners and housing advocates. In relation to the issue, the U.S. Senate has approved a bill that would have made it harder for borrowers to challenge suspected unjustified foreclosures.
However, President Barack Obama has expressed opposition of the bill and has intimated that he will use his pocket veto power to send the bill back to the House. Despite the huge number of foreclosed dwellings and bankruptcy properties for sale, some legislators allegedly believe that halting foreclosure proceedings will result in more harm than good.
The legislative bill would have allowed courts to approve all notarizations, including those that are computer-stamped by bulk, a process that has been criticized largely by housing advocates who believe that this process has been used improperly to speed up foreclosure proceedings. They added that such methods have led to false affidavits being filed, allegedly causing thousands of properties to be erroneously foreclosed on.
Reid's request is also in response to announcements from these lenders that they are putting on hold foreclosures in 23 states, with Nevada not included among these states since only areas that have judicial proceedings were selected. The suspension, according to those who support Reid's request, will give homeowners some respite, particularly in Nevada where foreclosure and bankruptcy properties for sale have dragged the values of homes down.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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