anyone heard of Nevada Senate bill 248 that passed last fall. This may be more detail than you care to hear about but I thought it worth sharing.
Nevada state law requires lenders to provide ORIGINAL SIGNED PROMISSORY NOTE to be delivered to the Trustee in the event of default and foreclosure.
Since so many US mortgages (AKA Deed of TRUST and Promissory Note) were sliced and diced… And not to get to technical but a majority of these transactions were not handled with recorded assignements of Deed of Trust along with Note endorsements that were notorized and delivered with the Note purchase file…… What the banks did was use an Alonge document to transfer ownership of the Promissory Note.
Well this works in most instances its what I used for many years in my Hard Money lending Credit facilities. ( IE I had 5 million dollar line of credit with the bank that I would then make Hard Money loans and give an Alonge ( pledge to the bank of this Note and Deed of trust) then the bank would advance 80% of the Note amount from my credit line so I had 20% cash in each deal… However if you pulled TITLE report the Beneficial interest would only show my company even though I had pledged the Note to the bank….
So this is what the big boys did they Move millions of loans with simple Alonge documents and did not record the Assignmentts and the Original promissory notes are who knows were, this is also the robo signing actions you hear of.
So Nevada steps in and makes a Law NO ORIGINAL NOTE no foreclosure… So what this has done has forced lenders into short sale transactions… The lender can still short sale and be within the law.
However for the Investor not living in the Area short sales are a pain in the rear.. take time and what happens is the properties are usually listed far below even wholesale value, which facilitates 3 to 10 offers per property and a bidding war.
This is why the REO inventory has dried up in Las Vegas by and large, even though you read of thousands of houses in default… Its a freaking mess thats for sure.
If other states follow suit then the advantage goes to local investors and RE brokers make out big time as well. Because far fewer homes will be sold at Trustee auction, where no RE fee's are earned or generated.
jayhinrichs wrote:anyone heard of Nevada Senate bill 248 that passed last fall. This may be more detail than you care to hear about but I thought it worth sharing.Nevada state law requires lenders to provide ORIGINAL SIGNED PROMISSORY NOTE to be delivered to the Trustee in the event of default and foreclosure.
Since so many US mortgages (AKA Deed of TRUST and Promissory Note) were sliced and diced… And not to get to technical but a majority of these transactions were not handled with recorded assignements of Deed of Trust along with Note endorsements that were notorized and delivered with the Note purchase file…… What the banks did was use an Alonge document to transfer ownership of the Promissory Note.
Well this works in most instances its what I used for many years in my Hard Money lending Credit facilities. ( IE I had 5 million dollar line of credit with the bank that I would then make Hard Money loans and give an Alonge ( pledge to the bank of this Note and Deed of trust) then the bank would advance 80% of the Note amount from my credit line so I had 20% cash in each deal… However if you pulled TITLE report the Beneficial interest would only show my company even though I had pledged the Note to the bank….
So this is what the big boys did they Move millions of loans with simple Alonge documents and did not record the Assignmentts and the Original promissory notes are who knows were, this is also the robo signing actions you hear of.
So Nevada steps in and makes a Law NO ORIGINAL NOTE no foreclosure… So what this has done has forced lenders into short sale transactions… The lender can still short sale and be within the law.
However for the Investor not living in the Area short sales are a pain in the rear.. take time and what happens is the properties are usually listed far below even wholesale value, which facilitates 3 to 10 offers per property and a bidding war.
This is why the REO inventory has dried up in Las Vegas by and large, even though you read of thousands of houses in default… Its a freaking mess thats for sure.
If other states follow suit then the advantage goes to local investors and RE brokers make out big time as well. Because far fewer homes will be sold at Trustee auction, where no RE fee's are earned or generated.
Robo signing, welcome to that world . Actually very surprised we all have not had that discussion yet. SC most foreclosures were pulled about a year ago. Now slowly trickling back into the market. Short sales ,suck from my standpoint take to long. Never know what the bank are thinking . We had a house accepted for $49k nice deal in Charlotte . Bank approved , now they came back and said $65k which is crazy being comps for foreclosures are about $52- 54k
Jay spent Sunday looking at houses actually working similar angle. Not a process for all but for me works well. I am going to each area were we have purchased or purchasing . Simple writing down any homes that are in the 3 stages of foreclosure here in NC. Working on getting things before the agents get them.
talk soon
Alex
Alex,
what about court house steps is it an active market…
I did read a few years back when I was buying court house step Oregon property, that the FBI busted a group in NC for bidding Collusion.
Ya Know hey here is 1k take a hike and I will buy this one for 1 dollar over minimum.. It was a big fine like 800k split between 7 or 8 bidders that were in cahoots.
JLH
jayhinrichs wrote:Alex, what about court house steps is it an active market… I did read a few years back when I was buying court house step Oregon property, that the FBI busted a group in NC for bidding Collusion. Ya Know hey here is 1k take a hike and I will buy this one for 1 dollar over minimum.. It was a big fine like 800k split between 7 or 8 bidders that were in cahoots. JLHJay that's was my old way of doing things, back at the court house. Until all these tv flip the homes programs on tv . That is a good idea about revisit the auctions. Told Tori to add that to my to do list.
Haha.., no same crap in the auctions… Trust me. I still have yet to really find the auction buy in Vegas that amazingly outstrips a foreclosure… And I am saying this knowing every street in the city and an accumulated 180 hours of straight auctions… I normally laugh at the prices some pay…
Okay yes the bill cleaned up Vegas for now… Ergo Viva Atlanta which despite what everyone cites is still waaaaaaaayyyyy more open thanVegas ever was, even in the feeding frenzy!
Could I just point out how gorgeous Sydney Harbour is…. Fleeting visit home….overcast and grey, at the Opera Bar and on this forum… Lol… SAD!
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