According to Bruce Alit, Chief Compliance Officer at the Nevada Real Estate Division, a licensee can negotiate short sales with lienholders providing the licensee is part of the real estate transaction, as evidenced by being on the "Duties Owed." Read the Division's position statement by Clicking Here. Attorneys may handle short sale negotiations because they are exempt under NRS645.380(1) 3rd party negotiators (other than attorneys) must be licensed under the guidelines set forth by the Nevada Mortgage Lending Division. Click Here for Licensing Requirements. Here's a list of licensees and applicants who are eligible for conducting Pre-Foreclosure and Loan Modication activities, according to the Nevada Mortgage Lending Division - Check Here for the List Is the company you're using licensed to negotiate pre-foreclosure sales (short sale) ? Is a real estate licensee who is not a party to the transaction handling the negotiations? Is your unlicensed/virtual assistant doing it? Is the title commpany doing it? According to Mr. Alit, you will be held accountable if you hired or recommended for hire, an unlicensed loan modification / pre-foreclosure consultant. I'm interested in hearing from you.
Steven Kitnick, CNE, CSP, GRI, RRG
Steven Kitnick Seminars, LLC
www.shortsaleprofessionalnetwork.com
(702) 255-8722
I was recently asked, "I have clients that have listed their properties as short sales. They also have filed for mediation. I'm not sure if the mediation will suspend the short sale process or if they'll both continue forward at the same time. Do you know how the Nevada Foreclosure Mediation Program can impact short sale negotiations and vice versa?"
Marie S.
Las Vegas, NV
A short sale approval is one of the possible outcomes of the Nevada Foreclosure Mediation Program. However, according to your question, you do not have a sale yet. You have the property listed. Perhaps, by the time you get to mediation you will have a sale. If you have a sale before you get to mediation, you should process the short sale with the lienholder and their assigned loss mitigator. If you get an approval from the lienholder bring that information to the mediation. In other words, you should be working both simultaneously. What if you don't have a sale when you get to mediation? You might seek to get a pre-approved short sale under the HAFA guidelines effective April 5th, 2010. May I suggest you sign up for our $9.95 webinar on April 7th - the link is on our events page at www.shortsaleprofessionalnetwork.com Attorney Robert Noggle, Jan O'Brien, and I will be presenting some valuable information. By the way, the best number to contact Mr. Noggle is (702) 592-1938 (Cell). If you call that number you are sure to get him! P.S. If a Notice of Default ("NOD") has been filed, the Foreclosure Timeline continues to run. However, a trustee can not conduct a trustee sale unless they can produce a certificate indicating that the mediation has concluded. Please note that the Nevada's Foreclosure Mediation Program (FMP) and the Government programs HARP, HAMP, & HAFA are for owner-occupied properties.
In a foreclosure, the senior lienholder has 6 months after the date of the foreclosure sale or the trustee's sale held pursuant to NRS 107.080. If there are any junior lienholders, aka "sold-out lienholders", they would have 6 years years under a breach of written contract in the State of Nevada. In a short-sale, if full satisfaction for the debt is not agreed to, the senior and any junior lienholders would have 6 years.
NRS 40.455 Deficiency judgment: Award to judgment creditor or beneficiary of deed of trust.
1. Upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee's sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff's return or the recital of consideration in the trustee's deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.
2. If the indebtedness is secured by more than one parcel of real property, more than one interest in the real property or more than one mortgage or deed of trust, the 6-month period begins to run after the date of the foreclosure sale or trustee's sale of the last parcel or other interest in the real property securing the indebtedness, but in no event may the application be filed more than 2 years after the initial foreclosure sale or trustee's sale.
NRS 11.190 Periods of limitation. Except as otherwise provided in NRS 125B.050 and 217.007, actions other than those for the recovery of real property, unless further limited by specific statute, may only be commenced as follows:
1. Within 6 years:
(a) An action upon a judgment or decree of any court of the United States, or of any state or territory within the United States, or the renewal thereof.
(b) An action upon a contract, obligation or liability founded upon an instrument in writing, except those mentioned in the preceding sections of this chapter.
This is for informational purposes only! Do not offer legal advice. Seek a competent attorney.
Steven Kitnick
Steven Kitnick Seminars, LLC
NRS 11.200 Computation of time. The time in NRS 11.190 shall be deemed to date from the last transaction or the last item charged or last credit given; and whenever any payment on principal or interest has been or shall be made upon an existing contract, whether it be a bill of exchange, promissory note or other evidence of indebtedness if such payment be made after the same shall have become due, the limitation shall commence from the time the last payment was made. [1911 CPA § 26; RL § 4968; NCL § 8525] Remember: This is for informational purposes only. Do not offer legal advice. Consult with a competent attorney. Steven Kitnick www.NevadaCE.com
Ask Steve!
How can I find out if the house I'm renting is in foreclosure?
Tina L. Carson City, NV
Contact a local title company and ask them to check their Notice of Default list, or go to: www.rentalforeclosure.com. On May 20th, 2009 President Obama signed Public Law 111-22 "Protecting Tenants in Foreclosure Act. You should also note that the Nevada Legislature's AB140 Sections 2 and 6.7 which goes into effect on October 1st, 2009, requires that if a sale of property is a residential foreclosure, a separate notice must be served upon any tenant or subtenant. All the Best!
Steven Kitnick, CSP, CNE, GRI, RRG
Las Vegas, NV
For Steve's Online & Classroom Continuing Education Classes, go to: www.StevenKitnickSeminars.com
Steve is a provider of classroom & online real estate, appraisal, & home inspection education including Pre-License, CE, Post-License, Professional Development, & Designation Programs in 50 states!
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