Hello. Welcome to Todd Miller TV. The topic of this video is Las Vegas real estate news. Some of you are aware about a year and a half ago we had this bill passed called AB-284 and that made it very difficult for banks to foreclose.
Well, it has taken them a little over a year to really figure it out and they’ve started to ramp up the number of notice of defaults that they file on properties. We’re still not to where we were a year and a half ago but it’s building again.
A matter of fact, every month for the last eight months, it’s increase of number. Well, there’s now a new bill in the senate in Nevada called SB-321 and what that bill is, is that’s a homeowner’s bill of rights and all it does is it puts more impediments in place of banks before they can foreclose. Similar to what they did in California, they have to do all of these steps.
So I’m going to talk really quick philosophically about that and I’m going to talk about practically and how that affects the real estate market. So philosophically, people say, “Well, but isn’t it right that a homeowner should get all these chances to save their home?” Well the problem is, is a lot of these people are – this is strategic. They’re not trying to save their home. They’re just living there for free and this just gives them an opportunity to live there for free longer. They have no intention.
Las Vegas real estate news
A matter of fact, most of them can’t, meaning they owe $50,000 in bank interest and payments plus they’re upside down. They don’t want to be good on the house because if they get caught up with their payments again, they’re upside down. They’re in this position they’re never going to recover from and they’re not going to get principal reductions.
So that’s the strategic aspect of it is people are saying, “Well, these people need this help.” They don’t need help. They’re just freeloading and it gives them more time to do that.
So on the practical side, on the Las Vegas real estate news side, this is the effect. The effect is that we should have this many houses on the market, normal sales for people to buy. Problem is we have much less. The reason we have much less is because they’re houses that can’t be transacted. They’re like locked up and there are a lot of them.
Las Vegas real estate news
So what has happened is there’s this artificial price depreciation right now. We don’t know how long it’s going to last. It could last for five years, ten years. It could never stop. It could end next year. It could go up and stay even. It could go up and go down. We don’t know. We just really don’t know.
But right now, if you’re trying to buy a house in Las Vegas, it’s going to be very frustrating. So the big news here in Las Vegas real estate news is this SB-321, this homeowner’s bill of rights, and the potential negative effect it’s going to have if you are trying to buy a house.
Now if you already own a house, if you bought one recently, it’s good because prices are going up. You will be able to sell and cash out and make some money and if you’re living in a house for free, you’re going to live there for free for a while longer more than likely because it’s just another roadblock for the foreclosure process. Las Vegas real estate news.
Anyway, I thought I would share that with you. That is the Las Vegas real estate news for 2013 and thanks for watching the video. Bye.