The Nevada Homeowners Bill of Rights (NHBR) has been in place for nearly ten years. The bill establishes protections for homeowners from predatory foreclosure practices. The bill empowers homeowners to sue if lenders do not use ethical or compliant procedures. In turn, lenders can maintain customer trust by keeping their practices above board and up-to-date. Foreclosure experts recommend keeping an especially close eye on these four aspects of the bill.
Four Things Lenders Should Pay Attention to in the Nevada Homeowners’ Bill of Rights
1. Necessary Foreclosure Notices
The Nevada Homeowners’ Bill of Rights outlines the appropriate pre-foreclosure and foreclosure notice protocol. Lenders must deliver a summary of information to the borrower at least thirty days before issuing a notice of default. The summary must include all the required information, including relevant dates, payment history, amount due, and contact information.
Lenders must provide a statement of foreclosure prevention alternatives, must indicate that a homeowner may ask for a copy of their mortgage, and instructions about loan modification.
2. Dual Tracking
Dual-tracking is the process in which a lender tries to settle a default through more than one line of action. This might include filing a judicial and non-judicial foreclosure, or issuing a notice of default while in negotiation with the borrower. Lenders might use this strategy to try to secure the best return for the assets, but it is considered highly unethical. The NHBR prevents dual-tracking.
3. Single Point of Contact
The NHBR maintains that there be a single point of contact for a given borrower. This action prevents endless numbers of people that do not intimately know the borrower’s case giving information and making promises that they do not have the authority to make. A single point of contact can be a single team of people, as long as they are familiar with the borrower’s case.
4. Right of Homeowner to Sue
If any compliance is not followed by lenders, homeowners have the right to sue lenders for actual or statutory damages. Lenders are given extra incentive to ensure that their practices remain ethical. At Total Lender Solutions, our team makes educating lenders about compliance law a top priority.
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.
