Two new laws went into effect October 1st affecting bank owned homes. The first deals with the Sellers Real Property Disclosure (SRPD). Until now, banks could waive the SRPD in which a seller discloses any known defects to the property. As of Oct. 1, every seller, whether traditional or bank owned, must now fill out the SRPD. The only exception is a home bought at a Trustee Sale.
The second law, which also went into effect October 1st, enhances the Nevada Attorney General's enforcement authority over foreclosure fraud. Assembly Bill 284 requires homeowner access to information on the companies holding their mortgage(s). Any documents used in the foreclosure process must now be recorded in the local office of the county clerk. The foreclosing party must also record a notarized affidavit of authority to foreclose, including all the information needed to ensure the party has the legal right to foreclose on the property. This will help to ensure homeowners and prospective buyers can get a clean chain of title.
Foreclosure sales accounted for 65% of all residential sales in Nevada during the second quarter, the highest percentage of any state, according to RealtyTrac. Additionally, RealtyTrac finds third parties purchased a total of 15,685 homes in foreclosure or bank owned in Nevada during the second quarter, up 24% from the first quarter and up 31% from the second quarter of 2010.
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