Foreclosure sales have been on a steady decline for about a year in Clark County (Las Vegas), Nevada. However, since October the Notices of Default have all but stopped.
This is due to new legislation requiring banks to attest that the are the legal beneficiary of the deed of trust and have the authority to foreclose. How novel isn’t it? The banks have to swear they are the note holder or authorized representative and that they have their documents in order. Is the state of Nevada asking for too much with such a simple request?
Well, with the “Robo-signing” scandal coming to light, banks are now very apprehensive to attest having their documentation in order.
So the result, VERY LOW REO inventory at the moment and it will probably stay that way for several more months.
