Robosigning law has unintended consequences, Nevada Realtors say
Some Nevada Realtors believes a 2011 robosigning law is to blame for a drop in foreclosures that is keeping abandoned homes off the market.
The law requires lenders to sign an affidavit saying they have personal knowledge of a property’s document history before they can foreclose. The Nevada Association of Realtors says the law needs to be amended to define the term “personal knowledge” and to address how trustees handle foreclosed properties. The law has “unintended consequences,” the group says. Nevada Inc and the Las Vegas Review Journal have stories.
The Realtors association also takes aim at lawyers. Lawyers play a critical role advising clients on the legal aspects of real estate transactions, according to one of its recommendations. “However, many law firms today have overstepped those boundaries and are pushing clients into loan modifications or bankruptcy when, in reality, a short sale is the best step for the consumer. Policymakers need to closely examine the role that law firms are playing in today’s real estate transactions,” the recommendation says.
