AB_284 is blamed for the tight inventory in Las Vegas real estate market. Even though it has had a big effect on Las Vegas housing market, it did not affect Arizona, and Phoenix is experiencing the same inventory shortage and prices have gone up more than Las Vegas.
I truly believe that it is the policy of United States Federal government, executed by Fannie Mae, Freddie Mac and HUD to keep inventory low and raise home prices in order to revive the biggest industry in US which is construction business and it is working like a charm.
The bill to modify AB-284 or (AB-666 the devil’s bill) according to one Las Vegas Realtor was finally introduced to Nevada Legislation on March, 15th.
Nevada AB-300 was introduced to Nevada Legislation on March, 15th. This bill modifies AB-284 which is blamed for lack of inventory of Las Vegas homes and condos for sale by making it easier for banks to foreclose on distressed properties. You can read it for yourself.
This is very significant; however I could not find any articles about it. So you are the first to read it, and that is because I had nothing better to do at 9:25pm on a Saturday night. I need to get me a life, really.
I wrote about it immediately in my Las Vegas real estate Facebook page
Although I am not an attorney I have read a lot of bills however I could not make any sense of the following bill, best of luck to you.
Title: AN ACT relating to real property; revising provisions governing the affidavit of authority to exercise the power of sale under a deed of trust which must be included with a notice of default and election to sell; and providing other matters properly relating thereto.
Introduction Date: Friday, March 15, 2013
Summary: Revises provisions governing real property. (BDR 9-961)
Fiscal Notes: Effect on Local Government: No.
Effect on the State: No.
Digest: Existing law requires a notice of default and election to sell real property subject to a deed of trust to include an affidavit based on the personal knowledge of the affiant setting forth certain information concerning the deed of trust, the amounts due, the possession of the note secured by the deed of trust and the authority to foreclose.
(NRS 107.080) This bill provides that certain information provided in the affidavit may be based on:
(1) the information obtained by the affiant’s review of the business records of the beneficiary of the deed of trust; and
(2) the information contained in the records of the recorder of the county in which the property is located or the title guaranty or title insurance issued by a title insurer or title agent authorized to do business in this State.
This bill also revises the information required to be stated in the affidavit.
Primary Sponsor(s): Assemblyman Jason Frierson. Source: Nevada Assembly
This bill will be discussed in Assembly Judiciary Committee early next week and we will know more by then.
Even though it is widely believed that changes to AB-284 will increase Las Vegas foreclosures greatly, I do not think so. Instead I believe that increasing notices of default (that scares no one) and consequently notices of Trustee Sale (that scares the Jesus) out of the borrower will result in delinquent borrowers who have been living in their home or condo mortgage free (in some cases totally free) for average of 28 months become serious about short selling their property, thus increasing inventory, and maybe, just may be slow down rocketing prices in the next few month.
Our inventory of Las Vegas residential real estate is the worst I have ever seen and it cannot last.
Lastly, investors have no more than 2-3 of years to invest in Las Vegas real estate since at that time investors will NOT be able to get positive cash flow after expenses. I will repeat what I have been writing for the past couple of years. Those who invest in Las Vegas real estate now will look like a genius in 5 years, just like investors who bought in 2010-2011.