Time to Take Action: Homeowner Bill of Rights
Your help is needed to pass one of PLAN’s legislative priorities: the Nevada Homeowners Bill of Rights, Senate Bill 321.
At the bottom of this blog is a description of the full benefits. Briefly, it takes the “bad acts” listed in the Attorney General Catherine Cortez Masto’s master settlement against the five major banks and outlaws them in Nevada by both large and small lenders. It then gives remedies to those hurt by bad actors and stops the ways that lenders may evade compliance with the law.
The purpose of this bill is to increase predictability for all parties involved in the foreclosure process and provide strong but fair accountability measures by extending protections to all residential mortgages written in Nevada. This should also speed up the processing of foreclosure for those borrowers without options to avoid foreclosure.
SB321 will help curb unfair foreclosure practices, so that more Nevadans who qualify for loan modifications can avoid foreclosure and keep their homes. Reducing foreclosures will help stabilize the state’s housing market and help limit the terrible impacts this crisis has had on families, communities and our economy.
The Homeowner Bill of Rights will be heard Wednesday April 10th in the Senate Judiciary committee at 8:00am.
- Go to the legislative website at https://www.leg.state.nv.us/App/Opinions/77th2013/A/ Check that you are FOR SB321 and fill out the constituent information. We hope to propel it toward the top of the bills with the most support in the next few days
- E-mail members of the Senate Judiciary committee and ask them to support Nevada’s homeowners. Committee members e-mail addresses are supplied below. It is best to personalize your note as much as possible.
Sen.Tick Segerblom (Chair) firstname.lastname@example.org
Sen. Ruben Kihuen (Vice – Chair) Ruben.Kihuen@sen.state.nv.us
Sen. Mark Hutchison Mark.Hutchison@sen.state.nv.us
Sen. Justin Jones (Bill Sponsor) Justin.Jones@sen.state.nv.us
Sen. Scott Hammond Scott.Hammond@sen.state.nv.us
Sen. Aaron Ford Aaron.Ford@sen.state.nv.us
Sen. Greg Brower Greg.Brower@sen.state.nv.us
Nevada Homeowner Bill of Rights
The purpose of the Nevada Homeowner Bill of Rights is to increase predictability for all parties involved in the foreclosure process and provide strong but fair accountability measures by extending protections to all residential mortgages written in Nevada. This should also speed up the processing of foreclosure for those borrowers without options to avoid foreclosure.
Borrowers must be sent a pre-foreclosure notice that includes a summary of all loss mitigation options offered, account summary, facts supporting the right to foreclose, and a notice that the borrower may request a copy of the loan note and the identity of the investor holding the loan.
Mortgage ServicesNeither a Notice of Default nor a Judicial Foreclosure shall be initiated unless and until the mortgage servicer shows, through documented proof, that it holds the beneficial interest and has the legal standing to foreclose on the property.
- shall not forward a file to the foreclosure department or begin foreclosure without first contacting the homeowner via phone and mail to evaluate the homeowner for other loan mitigations first.
- shall have specific loss mitigation procedures for customer outreach, timelines for responses, and a consistent location for documentation exchange.
- shall have a single point of contact for borrowers seeking information about their loans and throughout the modification period. The single point of contact shall provide clear, accurate information to the homeowner and coordinate all documents requests and exchanges.
- shall give borrowers who submit the completed loan modification application a “yes or no” decision, with an explanation, before the servicer commences the foreclosure process. Denials of loss mitigation relief must be automatically reviewed, with a right to appeal for borrowers.
- shall not forward a file to the foreclosure department while the homeowner is being considered for a loan modification or other loss mitigation alternatives. (dual tracking)
- shall not charge fees for the loan modification application process or other loss mitigation processes.
- shall not charge late fees or penalties during a trial plan for loss mitigation options.
A Notice of DefaultA Notice of Trustee Sale shall be required within 9 months of a Notice of Default. A new Notice of Trustee’s Sale shall be required if the Trustee’s Sale is not completed within 90 days.
- shall list the monetary amount of arrears plus fees necessary to cure the default.
- shall be required if a payment is accepted by the bank after the recording of a Notice of Default.
Borrowers may seek injunctive relief to stop material violations of the law.
A defendant in a Judicial Foreclosure Action has the option of electing to participate in the Nevada Foreclosure Mediation Program.
Any breach of these provisions is also considered a deceptive trade practice under NRS 598 and the remedies and damages available under NRS 598 are available to the borrower.