Assembly Bill 149 (A.B.149)
June 25, 2009
If this bill passes the state Senate, it is expected to take effect on July 1, 2009. If you receive a foreclosure notice on July 1, 2009 or after this date, you can request a mediation hearing. A.B. 149 is simply a way for home owners who are in foreclosure to petition their lenders for a mediation hearing to get a loan modification. Once the homeowner formally requests a hearing, the lender is required to stop all foreclosure activity until the mediation hearing is conducted.
The banks are required to send a representative to the hearing who is qualified to make loan modifications. The bank is not required to adjust the loan but rather this is to give troubled home owners a more effective way to communicate with their lenders. This bill is being touted as a tool to possibly stem the tide of foreclosures in Nevada which has been one of the hardest hit states.
The thought behind this bill is that some home owners are having trouble actually contacting the company that holds their loan. Mortgages are bought and sold rapidly and banks are responding slowing to requests, so giving home owners a formal hearing to make a case for a loan modification would make the process easier on the homeowner. And so the thinking goes, it is also good for lenders because a glut of unoccupied homes driving prices down isn’t good for anyone and foreclosing on homes is an expensive process and a reduced a payment plan is still a good option for the bank.
It remains to be seen whether A.B. 149 will be able to accomplish all that is hoped as so many Las Vegas home owners have negative equity in their property. The only thing that is certain is that there is still more pain to come in Las Vegas.
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