Deficiency Judgments In Nevada

Award to judgment creditor or beneficiary of deed of trust; exceptions

1. Except as otherwise provided in subsection 3, upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee’s sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff’s return or the recital of consideration in the trustee’s deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.

2. If the indebtedness is secured by more than one parcel of real property, more than one interest in the real property or more than one mortgage or deed of trust, the 6-month period begins to run after the date of the foreclosure sale or trustee’s sale of the last parcel or other interest in the real property securing the indebtedness, but in no event may the application be filed more than 2 years after the initial foreclosure sale or trustee’s sale.

3. If the judgment creditor or the beneficiary of the deed of trust is a financial institution, the court may not award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust, even if there is a deficiency of the proceeds of the sale and a balance remaining due the judgment creditor or beneficiary of the deed of trust, if:

(a) The real property is a single-family dwelling and the debtor or grantor was the owner of the real property at the time of the foreclosure sale or trustee’s sale;

(b) The debtor or grantor used the amount for which the real property was secured by the mortgage or deed of trust to purchase the real property;

(c) The debtor or grantor continuously occupied the real property as the debtor’s or grantor’s principal residence after securing the mortgage or deed of trust; and

(d) The debtor or grantor did not refinance the mortgage or deed of trust after securing it.

4. As used in this section, “financial institution” has the meaning ascribed to it in NRS 363A.050.

Nevada’s one-action rule, set forth in NRS 40.430, says that “there may be but one action for the recovery of any debt, or for the enforcement of any right secured by a mortgage or other lien upon real estate” the Lender/Beneficiary can only complete one of two remedies, not both. That action must be in accordance with the provisions of NRS 40.430 to 40.459, inclusive the lender generally must complete the foreclosure process, or “exhaust the security before recovering from the debtor personally,” before pursuing the borrower for the payment of the debt. Bonicamp v. Vazquez, 120 Nev. 377, 91 P.3d 584, 586 (2004).

I have heard different positions on this if the lender agrees to the voluntary short sale than he may not pursue the debtor without violating Nevada’s one-action rule. I have been on the lookout for any new case law regarding changes and new decisions, but have not come across yet.

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Nevada Assembly Bill 140

AN ACT relating to real property; revising provisions relating to a
notice of sale of real property under execution; establishing
the crime of defacing a notice of sale of real property under
execution or a notice of sale of real property pursuant to a
trustee’s power of sale; establishing rights and duties of a
purchaser of real property pursuant to a foreclosure sale and
establishing rights and duties of a tenant in possession of
such property; revising provisions relating to a sale of real
property pursuant to a trustee’s power of sale; requiring a
landlord to make certain disclosures to a prospective tenant;
and providing other matters properly relating thereto.

Finally bills have passed giving tenant's rights during a foreclosure. The trustee will have to give the tenant notice that the property they are renting is in foreclosure. Under new Nevada law effective October 1, 2009 tenant's are now given 60 days to vacate after the foreclosure. What a mess Nevada has gotten into.

Posted by: Laura Gamino

Loan Modification Scams Prevalent in Nevada

The Nevada Attorney General's office says loan modification scams are topping all cases of housing fraud in Nevada.

This is why we use a local attorney licensed here in Nevada and knows Nevada Law! For more information on Loan Modifications you can contact us and we can give you the name and number of an Attorney to avoid the scams!

For the full story click on the link: http://www.ktvn.com/Global/story.asp?S=10713807&nav=menu549_2

Sign up today for breaking news and weather text alerts Americans Face a Fourth Concerned, but Resilient

For others, ultimately the answers, the real strength that will lift us, may come from within ourselves, individually and collectively.

Real estate manager Laura Gamino sees full recovery a few years off, still she's irrepressivly upbeat. "If we stick together, work together as a community, keep our business local, we'll spring back."

Medical supply company owner Doug Bolton sees Americans turning to their own resilience. "If you fall down, you've got to get back up, keep going. That's all you can do. You can't give up. You've got to keep going and hope for the best. I think it's coming around. A year from now I think we'll be back on a good track."

Some common wisdom from some of your neighbors and food for thought on our nation's 233rd birthday. Happy Fourth of July.

Posted: 7:05 PM Jul 3, 2009
Last Updated: 7:12 PM Jul 3, 2009
Reporter: Ed Pearce

For the full story click on link: http://www.kolotv.com/home/headlines/49895362.html

Foreclosure help could hinge on who holds the note

As reported By Brian Eckhouse (contact)

A home in Henderson is listed for auction in November. Legislation signed by Gov. Jim Gibbons is designed to avert more home losses by allowing homeowners facing foreclosure to demand mediation with their lenders. The program is expected to be available in mid-July.


This will be very important and loan Modifications will not be as necessary. It's time for the banks to open the door to help home owners dealing with the economy downturn. Gov. Jim Gibbons is finally helping by adding this. Let's hope that this helps and doesn't hurt any more homeowners! For the full story go to this link. http://www.lasvegassun.com/news/2009/jun/02/whos-holding-your-note/
Posted by Laura Gamino

Federal grand jury brings new conspiracy, fraud charges against realtors

Reported by the Las Vegas Sun on June 19, 2008

A federal grand jury today returned a superseding indictment against a Las Vegas real estate broker and her husband who were charged in March with defrauding federally-insured financial institutions of millions of dollars.

The new charges allege that 31-year-old Eve Mazzarella and her husband, 45-year-old Steve Grimm, schemed to inflate housing values, using straw purchasers and limited liability companies, said Gregory A. Brower, U.S. Attorney for the Nevada district.

New charges include conspiracy to commit bank fraud, mail fraud, wire fraud and money laundering, 13 counts of bank fraud and criminal forfeiture. Mazzarrella is also charged with money laundering.

Four additional defendants, 28-year-old Melissa R. Beecroft, 46-year-old Christina R. Thompson, 33-year-old Amy R. Ortiz and 52-year-old Jyothi Panikkar, also known as Joe Panikkar, all loan officers and mortgage brokers in Las Vegas, are included in the superseding indictment.

They are charged with conspiracy to commit bank fraud, mail fraud, wire fraud and money laundering, various bank fraud counts and criminal forfeiture. Ortiz is also charged with assisting with providing fraudulent and false forms to the IRS.

Defendants Beecroft, Thompson, Ortiz and Panikkar were arrested in Las Vegas on Wednesday and are expected to make their initial court appearance today before U.S. Magistrate Judge Peggy A. Leen at 3 p.m.

Grimm and Mazarrella will be arraigned on new charges at 8:30 a.m. June 27.

Maximum penalties for conspiracy to commit bank fraud, mail fraud and wire fraud and for each bank fraud charge are 30 years in prison and a $1 million fine. The maximum penalties for conspiracy to commit money laundering and money laundering are 10 years in prison and a $250,000 fine. The maximum penalty for aiding and assisting with fraud and false statements is three years in prison and a $250,000 fine.

The investigation is ongoing by the FBI and the IRS Criminal Investigation team with assistance from state and local law enforcement authorities, Brower said.

Being a Realtor or a Lender it is important for us to always act in the most ethical fashion; we are held to a higher standard. Remember that there are many laws and legal consequences that a true professional must be aware of.

Additional comments..go to link

http://www.bloomberg.com/news/marketsmag/mm_1208_trim2.html

Posted by: Laura Gamino, Landlord Defense Bureau, LLC