Nevada Homeowner Bill of Rights
The purpose of the Nevada Homeowner Bill of Rights is to increase predictability for all parties involved in the foreclosure process and provide strong but fair accountability measures by extending protections to all residential mortgages written in Nevada. This should also speed up the processing of foreclosure for those borrowers without options to avoid foreclosure.
- Borrowers must be sent a pre-foreclosure notice that includes a summary of all loss mitigation options offered, account summary, facts supporting the right to foreclose, and a notice that the borrower may request a copy of the loan note and the identity of the investor holding the loan.
- Mortgage Servicers
a. shall not forward a file to the foreclosure department or begin foreclosure without first contacting the homeowner via phone and mail to evaluate the homeowner for other loan mitigations first.
b. shall have specific loss mitigation procedures for customer outreach, timelines for responses, and a consistent location for documentation exchange.
c. shall have a single point of contact for borrowers seeking information about their loans and throughout the modification period. The single point of contact shall provide clear, accurate information to the homeowner and coordinate all documents requests and exchanges.
d. shall give borrowers who submit the completed loan modification application a “yes or no” decision, with an explanation, before the servicer commences the foreclosure process. Denials of loss mitigation relief must be automatically reviewed, with a right to appeal for borrowers.
e. shall not forward a file to the foreclosure department while the homeowner is being considered for a loan modification or other loss mitigation alternatives. (dual tracking)
f. shall not charge fees for the loan modification application process or other loss mitigation processes.
g. shall not charge late fees or penalties during a trial plan for loss mitigation options.
3. Neither a Notice of Default nor a Judicial Foreclosure shall be initiated unless and until the mortgage servicer shows, through documented proof, that it holds the beneficial interest and has the legal standing to foreclose on the property.
4. A Notice of Default
a. shall list the monetary amount of arrears plus fees necessary to cure the default.
b. shall be required if a payment is accepted by the bank after the recording of a Notice of Default.
5. A Notice of Trustee Sale shall be required within 9 months of a Notice of Default. A new Notice of
of Trustee’s Sale shall be required if the Trustee’s Sale is not completed within 90 days.
6. Borrowers may seek injunctive relief to stop material violations of the law.
7. A defendant in a Judicial Foreclosure Action has the option of electing to participate in the Nevada Foreclosure Mediation Program.
8. Any breach of these provisions is also considered a deceptive trade practice under NRS 598 and the remedies and damages available under NRS 598 are available to the borrower.