Economists look to fix Foreclosure woes in Nevada

Housing experts will soon get together with Nevada legislators to discuss ways to improve our current housing market. Their intention is to increase the amount of short sales and provide even more protection to homeowners facing financial trouble.

Experts say that although our market is seeing improvement, we are still a long way from where we need to be. Reports expect the valley will exceed 20,000 foreclosures this year for the third year in a row. However, reports also indicate that since July 2009 the number of foreclosure transactions have been declining and short sale transactions are increasing. Currently, short sales account to about 30% of our market and are expected to increase throughout 2011. If we can continue to increase the amount of short sales and improve the way short sales are conducted we should see that number increase extensively.

Assembly Speaker Barbara Buckley, who wrote legislation creating our state’s foreclosure mediation program in August 2009, said she expects a push in 2011 to better protect homeowners and make short sales easier. "Currently, when homes are sold as short sales, or are foreclosed, the holders of the mortgage have up to six years to collect the deficiency," Buckley said, "We will be trying to make second mortgages and short sale deficiencies limited to six months."

This will undoubtedly be great news for homebuyers. For now, those that do not get their deficiencies waved can expect to repay that amount long after the sale of their property. “The lenders won’t sue the homeowners, but they will sell the debt to investors who will,” Buckley said. “If you’re making 30 grand a year and they garnish you at 25 percent of your income, you will be an indentured servant the rest of your life."

Regardless of your situation it is best to speak with an attorney as soon as possible. They can answer all of your questions and give you all of your options. They can help you get your loan modified and in some cases your principal reduced. If you qualify for a short sale, they can help you lower and in most cases clear your deficiency.

Obviously, we are a long way from the boom in 2004, but with the kind of legislation being proposed by housing experts and legislators like Barbara Buckley we can get through the recovery sooner rather than later.

What else do you think legislators could do to help our market recover?