Better Mortgage Foreclosure Protections Sought in Nevada

After years at the top of the problem real estate markets, Nevada still has one of the highest foreclosure rates in the country. And con artists are increasingly taking advantage of Nevadans who seek help. While not all “Loan Modification Specialists” are illegitimate, many promise to help homeowners negotiate loan modifications for a fee, only to scam the money without performing the services promised.

See Also: An Escape Route From Foreclosure

The state simply needs better foreclosure protections and additional resources for those in trouble. Nevada’s Attorney General has resources available on foreclosure mediation on her website to help.

Bills Being Heard at State Legislature Designed to Help

AARP is supporting two bills at the state legislature which will help protect Nevada homeowners seeking home loan modifications. Current Nevada law gives homeowners in owner occupied homes the ability to request mediation where they may receive a loan modification but the program has loopholes which must be fixed.

AB300 gives needed clarification and protection to homeowners seeking a loan modification. If people want to stay in their homes or find a way out without just walking away there should be appropriate processes to help them. There should processes that actually work – where lenders participate in good faith and follow through.

AB308 would provide clear and precise procedures regarding activities of foreclosure and loan modification consultants, and those employees that work for them. It also provides penalties for those who violate the law. Ideally, it would limit predatory practices against those seeking protections or loan modification. This bill would protect homeowners from unscrupulous “loan modification specialists” who do not operate in good faith.

AARP testified that Nevada should regulate the activities of foreclosure consultants, loan modification consultants, and similar professions and that the state should expand consumer protections, regulation and enforcement procedures and prohibit all mortgage related professionals from engaging in unfair, deceptive, or unconscionable practices. Those interested in the outcomes of these two bills should keep an eye on our webpage after the state legislative session is over in mid-June to learn more about whether the bills passed. www.aarp.org/nv

AARP Foundation Helps Nevada Homeowners Find Quality Assistance

AARP Foundation is offering help for those having trouble making their mortgage payments as well. An article will appear in the June issue of the AARP Bulletin with details about a service designed to help those with mortgage troubles navigate their way to the best resources to help them make the best decision for their individual circumstance. And for more information about the AARP Foundation resources on mortgage foreclosure call 1-800-635-1402.