IRVINE, CA -- (Marketwired) -- 08/16/13 -- RealtyTrac® (www.realtytrac.com), the leading online marketplace for comprehensive housing and real estate data, today released a July 2013 Foreclosure Market Report for the Reno-Sparks metropolitan statistical area, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 110 properties in July in the metro area, a decrease of 33 percent from June 2013 and down 69 percent from July 2012.
The decrease in Reno-Sparks overall foreclosure activity was driven by a sharp drop in Notices of Default (NOD) and scheduled foreclosure auctions (NTS). Notices of Default dropped 46 percent from June to July, with only 13 NODs in the metro area during the month -- down 93 percent from July 2012. July was the second straight month where NODs decreased annually following six straight months where NODs were rebounding annually.
"New state legislation has slowed down the foreclosure process in Nevada once again," said Craig King, chief operating officer of Reno-based real estate brokerage Chase International. "Attorneys, Realtors, buyers, lenders, title companies and others are sorting through the new laws, which could take some time to decipher.
"We're well past the worst of the foreclosure crisis in Reno, but the rapidly changing laws are making it more difficult to clear out the distressed properties that are still hanging around," King continued. "The irony is that now would be a great time to sell those distressed properties given the low inventory of homes for sale now available."
King said the decrease in July foreclosure activity was largely due to the changes made to the foreclosure process by two conflicting pieces of legislation recently passed by the state legislature and signed into law by the governor. One piece of legislation, Assembly Bill 300, was written to ease up some of the requirements put on foreclosing lenders by another state law passed back in October 2011, AB 284. AB 300 modified the strict documentation standards of AB 284 by clarifying the language and changing documentation requirements.
The other piece of legislation SB 321 -- known as the "Homeowner Bill of Rights -- makes it more difficult for banks to foreclose in Nevada and will go into effect Oct. 1. This legislation outlaws the practice of dual-tracking -- where a lender simultaneously pursues foreclosure and a foreclosure alternative such as loan modification -- and requires lenders to provide homeowners facing foreclosure with a single point of contact. In addition, SB 321 requires lenders to send homeowners facing foreclosure a notice with information about foreclosure alternatives at least 30 days before filing a Notice of Default.
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