States Deal with Local Foreclosure Problems
Last week, the housing bill that aims to provide mortgage relief for many troubled homeowners nationwide was finally signed into law. For many experts and analysts, the said legislation will not be able to address a significant percentage of distressed borrowers considering that the numbers are in the millions.
For this reason, states like California have decided to pass legislation in an effort to curb the foreclosure crisis in their cities. Following in their footsteps is Nevada, which currently holds the highest foreclosure rate in the nation.
According to recent reports, Nevada’s Legislative Commission’s Subcommittee to Study Mortgage Lending and Housing Issues are considering to make recommendations and have it ready by the 2009 session.
The provisions of the proposed legislation will also contain sensible measures just like the provisions found in the California law. It will hopefully include the following:
- Prohibiting lenders to file a Notice of Default without discussing foreclosure alternatives with the homeowner; and
- A 30-day notice requirement before the lender files a Notice of Default.
With the provisions, Nevada officials are hoping that their foreclosure problem will somehow ease up. Right now, the state is suffering from a sluggish home sales market, a large inventory of foreclosure properties and declining home prices. If the foreclosure crisis keeps up, it could really take a toll on the local economy.
Many non-profit organizations and state governments have decided to work side by side in order to provide assistance to these troubles borrowers. Most of them simply do not understand the foreclosure process and are just waiting for their homes to be repossessed. Sadly, many homeowners who lost their homes to foreclosure could have avoided such unfortunate situation if only they have received assistance earlier.
Across the nation, an estimated 3 million homeowners are expected to enter some stage of foreclosure by the end of the year.