Reno Real Estate Logic

The Home Affordable Foreclosure Alternatives Regulations are going into effect on April 5, 2010 which will change the business of selling your house short the ultimate transactional tool for home owners to date.

What has hampered the short sale alternative in Nevada is the fact that the lenders which reserve the right to pursue for deficiency judgements is the legal test of whether one continues in the short sale or just folds into a foreclosure.

As we are just learning banks such as Bank of America, Chase, JP Morgan, WAMU and a slew of others maintain that oppositional language which makes the short sales vulnerable to a potential six year loop. On the other hand if one were to throw in the keys and walk away, the rules for Nevada are six months to file for deficiency judgement on the primary mortgage and 6 years on the junior liens.Make sure you speak to your attorney and CPA on these important facts, they may change your outcome and decision.

So with the new regulations coming in on 4.5.10 those lenders that are in the HEMP Program, will automatically be in the HAFA Program. The trade off is that no lender will be able to pursue a deficiency or allow a promissory note or cash contributions to the short sale closing.

This is a fabulous wind fall for home owners and probably the most important new ruling since Nevada created the Foreclosure Mediation Program to protect it’s citizens and promote loan alternatives to foreclosures.

Call me for updated documents on the regulations and other interesting materials that I can send you about HAFA and AB149. We are finally on track again and many solutions to all problems.

All the best to come.  - Michelle