WHAT IS AB284 AND HOW IS IT AFFECTING THE LAS VEGAS HOUSING MARKET?
Posted by New Home Resource on June 25, 2012 in
The assembly bill known as AB284 became effective 10-1-11 and dramatically reduced the number of foreclosure filings in Nevada. Just as a disclaimer, we’re not attorneys and don’t even pretend to explain nor understand the whole of the law.
To put it as simply as possible, the bill requires lenders to file an affidavit regarding the possession of the defaulting homeowner’s mortgage note & deed. This affidavit would be filed along with the “Notice of Default” (aka NOD), and failure to comply is now a Class C Felony. The NOD is the act that really allows the lender to physically foreclose at a future date. So you can see that the whole thing is a domino effect – one must happen before the other, before the other, etc and the end result of an REO listing is directly affected by this new bill.
Literally thousands upon thousands of eventual-foreclosures are piling up on the bank’s books, while the banks work toward meeting the requirements of AB284. “When” these will all hit is anybody’s guess.
Today, we have a staggering few 4,500+/- properties listed on MLS – – – 487 of which are ‘REO’ (foreclosed) properties. All of the others are traditional sales, short sales, and/or investor ‘flips’. This low inventory has caused a buying frenzy wherein the lower-priced properties are receiving multiple offers within hours of listing. One of New Home Resource’s $210,000 listings received FORTY (40) offers!
The name of today’s game is overbidding and patience. Buyers are regularly agreeing to pay over the appraised value to not lose the property they’ve come to love. Gone are the days of sellers reducing their prices to meet low appraisals. Every good buyer’s agent is counseling their buyers as to these facts of today’s market and the probability of paying more than appraised value to keep the home in escrow.
What does all this mean? This is not all bad!!! First of all, in recent years, property values have been horribly, horribly undervalued – – we’re simply bringing the market back into line, one property at a time. Even paying a few dollars more for something is well worth it – the property is being bought at a fraction of where it sold just a few years ago! Even at these prices, we are stealing homes!! Interest rates are at an all-time low where you can OWN a gorgeous home for less than rent.
Just make sure you’re using a knowledgeable, professional Realtor® who knows today’s market, has excellent relationships with fellow listing agents and who can give you the best advice for your situation. You should be using a NEW HOME RESOURCE agent! Call Joanna Piette, Denise Moreno, Penny Womack or Debbie Sullivan today! 702-365-1000