Not really but it makes good press. The word on the streets is reactionary. Basically AB 284 addresses the issues of proper recordation of assignments & substitutions and also robosigning. Stuff that needs to be taken care of before close anyhow.
Here are some of the things I have heard from my peers about AB 284:
WE ARE AND/OR WILL RUN OUT OF INVENTORY! Shenanigans. We have been low on inventory since the first time buyer tax credit in 2009 and Las Vegas real estate inventory has been falling for the last 11 months in a row. If we go low on inventory it started happening well before this bill’s passage and implementation on October 1, 2011. It also takes generally 3+ months after a Notice of Default (NOD) or Breach & Election to Sell has been filed before a trustee sale date is established. See my Las Vegas foreclosure timeline. We still have 50000 (ish) NODs to wade through with about 3000-4000 trustee sales posted monthly.
REO AGENTS WILL BE PUT OUT OF BUSINESS! Boo hoo. When the market shifted and a majority of the inventory was distressed, the listings were given out to a few. This put many people out of business. I am sure anREO agent who wants to stay in business is resourceful enough to find new business. I have somehow managed to survive the last several years without getting into the REO or short sale listing business.
THIS WILL HELP SHORT SALES GET APPROVED! Maybe. Or maybe it would have to do with the legislation enacted in regards to short sales which was implemented in June/July. Little items like shortening the length of deficiencies with junior lienholders & time frames for lienholder approval.
Notice of Defaults are VERY low right now since this has been enacted, HOWEVER we still have 50K-ish NODs in the hopper to burn through. Another HOWEVER is that the trustee sale notice #’s have not dropped significantly.
What is my take on this? The sky isn’t falling & foreclosures will not be stopping. We will continue to have decreasing inventory (as we have been the last YEAR,) servicers will get their stuff in order and more revenue will come into the county via the county recorder’s office.
NOTE: This is an opinion piece and I am not a lawyer nor do I play one on the internet!