There is a lot of news out there about the recent foreclosure "freezes" or moritoriums. What does this mean to homeowners in Reno-Sparks area? Nevada is a non-judicial foreclosure state. What this means is that in order for a bank to foreclose in Nevada they do not have to go through a judicial process (go before a judge) to foreclose. When you take out a mortgage in Nevada you sign a Deed of Trust which says you agree to pay and if you fail to pay the lender can foreclose by simply filing a Notice of Default and subsequent Notice of Sale within the State laws. Many of the banks that instititued these foreclosure freezes have lifted in them in the 23 states that use the judicial process because these foreclosure are reviewed by the courts prior to being approved.
These freezes do not mean that homeowners are going to get off the hook. It simply means that you may have a bit more time to pursue alternative options, such as a short sale. Don't be fooled into thinking that you can hold off until after the holidays to look into your options. If you are facing difficulty paying your mortgage please seek help of a qualified real estate professional as soon as possible. The one thing you don't have is TIME.
Over the past several years we have seen the lenders institute foreclosure freezes in the 4th quarter simply because it is not good press to foreclose on homeowners during the holiday season. Although the issues seems to be more focused on "robo-signing" for the current freezes, historically this isn't uncommon.
Again, call an experience real estate professional today...
