When the robo-signing scandal hit Las Vegas, legislators decided to pass AB 284 to protect homeowners from fraudulent foreclosure.
AB 284 changed Nevada Foreclosure Law by adding stricter requirements for the foreclosure process. As of October 1, 2011, anyone filing a notice to initiate foreclosure under Nevada Revised Statutes (NRS) 107 must include a notarized affidavit documenting certain information regarding the ownership of the property that is the subject of the foreclosure, the authority of the trustee, and the amount in default and related fees and costs. In addition, AB 284 states that mortgages and assignments of real property may not be enforced unless they are recorded in the office of the recorder of the county in which the property is located.
After passage of the law foreclosures in the Las Vegas area ground to a halt, although there were those who said factors other than AB 284 were at fault. Whatever the reason though, foreclosures in Las Vegas are making a comeback in a big way.
Clark County foreclosure filings increased to 1,731 in October, up 30 percent from the previous month and up 92.8 percent from a year ago, online listing service ForeclosureRadar.com reported Wednesday.
This is still significantly off of the peak of foreclosure activity in 2009 when there were over 11,000 filings per month. Clearly though a 93% rise in foreclosures is significant. This is a trend that bears watching.