Nevada got the highest foreclosure rate in the United States for the second month in a row in April. This was according to the statistics released by RealtyTrac Thursday. The rate could remain high if lawmakers pass a bill that loosens restrictions on lenders.
The data showed around 1,900 homes received an initial notice of default in April. It was a 40 percent increase compared to last year. A total of 3,227 homes got foreclosure-related filing in April, which was down 15 percent from March. It was down 17 percent compared to the same period a year ago.
A state Senate committee reviewed a measure Thursday to ease requirements on lenders looking to foreclose. The bill was passed unanimously at the Assembly last month. The state Senate took no action Thursday.
The present law states lenders must personally know the history of a home loan before they can foreclose on a property. People who oppose the measure said it is a high standard because mortgages were purchased and sold at a fast rate during the housing boom and the subsequent collapse.
The strict rule was made to limit robo-signing, which is the practice of lenders foreclosing on homes without the legal right to do so. The measure took effect October 2011. This resulted to the virtual stop of the rate of homes entering foreclosure.
There’s a debate in the state with regards to the role the bill played in the slowdown of home foreclosures. Aside from the bill, there were other market-changing measures that took effect at the same time.
It was enough to make Nevada Attorney General Catherine Cortez Masto to launch a working group that was composed of representatives from several housing-focused entities and battled for months before they came out with fixes for AB284.
Realtors wanted to see the clean-up bill enacted soon. They have faced persistently low housing inventory that has pushed up prices by 31 percent year-over-year in the Las Vegas region.