AB-284 Workgroup notes and why this isn’t a big deal
Hello and welcome to Todd Miller TV. Today is Veteran’s Day so I’m casual Friday in the office. We’ve let the staff go for the day. So, I came in today to work and I actually got a change to talk to somebody who was on the workgroup that drafted/that help draft the legislation; the workgroup helped put together the Legislation and present it to the assembly. So, and I had a long conversation and we talked/and I got a lot of information out about this whole thing because as you’re probably aware, there’s a lot of fear (lingering) going on and there’s a lot of people out there that are very resistant to change. So when any type of change happens they get very upset, they go to panic mode and that panic is spread to a lot of people. So I wanted to get down really to the like nuts and bolts of what is going on. Why this whole thing was passed. What’s the big reason? Why are we doing this when to many of us, Foreclosure’s not that big of a deal in that. People who aren’t paying their mortgage they’re gonna get foreclosed. That’s a very simple way to look at it. But I got a really good information that explains this. And as I go through it think you’re gonna have a better understanding and maybe your fear level’s gonna be much less. So, I’m gonna look down at my notes here as I talk. Okay. They all realize that in Real Estate business, we’re all struggling. They all realize that home owners who are getting foreclosed are struggling. That people who own properties where values are declined or struggling. They’re all aware of that. The intent of this is not to make that worse. Because actually, if they stop foreclosures, it would get way worse. And this is why, Home prices would sky-rocket again because there’d be no inventories. So prices will go up and then what would happen is eventually this will all get resolved and all these houses are coming on the market and the prices would take. That instability would be extremely bad for us. So there’s no intention here to stop foreclosures. Okay. The idea here is that the land is the asset that we have as a state. And the Legislature owes the duty to the citizenry to protect all of us and protect the land. Now there’s a big problem, if you think back to the/you know, 8 years ago, remember we had crazy lending. If was a frenzy of lending and that lead to this. Well now we have a frenzy of foreclosure. That frenzy of foreclosure if it’s not done property is gonna lead to litigation, and it’s gonna lead to a frenzy of other problems that cause now title issues. Imagine you bought a house and then a couple of years later you get sued because the foreclosure was done wrong. You’ve been in you house now you’re having to paying attorneys and you know, it’s causing problems. So idea here is Let’s make sure that everyone’s doing things right. We’re crossing the tees, we’re dogging the ice, we’re doing all these things right, so that we have clear title to pass to people and we don’t create a worse problem. There’s no intent here to stop the inventory. Now a lot of you are saying the state could have settled. In a lot of state settled and took some money and said “we’ll just let the banks and everybody do what they’re doing but we will actually not take any/take some money.” Nevada didn’t do that. Nevada said “You know what, that’s short-sided for us to just take some money and let this problem keep happening, Let’s actually make it right.” So they were actually in our best interest, all of us. As Realtors, as Property Owners, as everybody, they’re trying to do the right thing here. There were workgroup set up, there were actually agents, there were attorneys, people from the title industry, there were trustees. The original like, “Bill” was like way more teeth in it. And some of the Trustees just said “hey, wait a minute. You know all these things that you’re trying to do, this is a little too much.” They cut a lot of that stuff out. And they came to something that was reasonable. So what that means is there was an opportunity for everybody at some point or a lot people to put input in and look at this and see what this is gonna do, so it wasn’t a big surprise. The key is, that the whole bill, the idea is to respect the process. This whole process of foreclosure, they want to make sure that it’s respected in such a way so that when titles passed its proper. So that we don’t end up with the problem later on of having another bubble of all these properties where title screwed up so people are selling ’em super cheap, because they’re like “you what, we know there’s title issues so we’ll it sell it super cheap. You can just take it without title insurance and then that’s gonna do what, gonna destroy property values.” You know the state gets revenue from value of property and if property values are down the state’s getting less revenue, the local government’s getting less revenue, it’s bad for everybody. So wanna make sure that they protect that. The idea here is to protect that, not to cause these inventory problems or our REO’s and things like that. There’s also other way to foreclose, you know, just because you don’t have all the perfect document, you’re missing something or signature’s not exactly right or whatever, it doesn’t mean you can never foreclose. There’s other way to do foreclosure, you know, there’s judicial foreclosure, there’s other ways for the beneficiary to come back and say “I need a foreclose on this to get the money out.” And people just gonna have to adjust. Also this thing about, this rumor going around, the trustees don’t wanted foreclosed ’cause they’ll all gonna go to jail. They have to sign something, they later find a mistake, that’s not the intent. The not intent is start throwing people in prison. It’s just to get the people to respect the process. That’s the real intent here. The bottomline is the state is here to protect us, it’s not here to collect money form unsettlements, it’s not here to, you know, keep a problem going. My gut feeling form the conversation that I had was that “this is not a big deal” I had even mentioned to this person “have you seen the videos?” and everything was, I’m getting all that are going around, I’ve seen all the crazy e-mails, and they’re just, you know, thew people who helped put this together are saying “this is over done, this is you know, this is fear mongering, this is really not appropriate, this is not gonna happen, it’s not this bad, they just made it worst than it sounds and they’re scaring people.” Which I said originally the first, ’cause this is video number 3 now, probably for me this is the last video I’m gonna do on this topic that’s overdone. That was my gut feeling on the first one, the second video with all the numbers, I showed the time frames and everything that makes sense, and after having this conversation, and taking all the notes and telling you guys, I feel pretty comfortable, you know, my business is Real Estate Broker, in addition to our regular company of selling Real Estate, is we do REO and us, having inventory.You know, Foreclosures are gonna happen, someone’s gonna sell the inventory. We hope it’s us, so it does affect us and I’ll tell you what, I’m not worried about it. So if I’m not worried about it, I don’t think you need to be worried about it as well. You can have your own opinion, you could talk to people. But anyway, that’s/those are my thoughts. I think will know in 6 months or a year, I think we’ll be able to look back and see who had the better idea of what was really gonna happen. So anyway, that’s my update for today. Happy Veteran’s day and hope to see you on another video. Thanks a lot.