Nevada Homeowners Strategically Defaulting in Record Numbers

by Ken Kappel on February 9, 2011

Tragically, 23% of all Nevada homeowners with foreclosure issues are throwing in the towel and strategically defaulting rather than repudiating their housing debt, which most of them could do if they merely understood the issue, and took action on their own to repudiate their illegal debt.

In our magazine style blog, we continue to report on breaking news from DSNews. In recent reporting Heather Hill Cernoch, brought this issue forward. Read her entire article here.

To the article.
According to a “Face of Foreclosure” report released this week by the Nevada Association of Realtors (NVAR), nearly one in four Nevada homeowners who have lost their homes to foreclosure admit to “walking away” as part of a strategic default.  The report also revealed that most of the state’s homeowners facing foreclosure were not aware of federal and nonprofit programs designed to help them.” [Emphasis Added.]

Ken here. Even if they were aware they would soon discover the “programs” are designed to aid the Banksters and loan servicers.

The article continues.
“With Nevada continuing to have the highest foreclosure rates in the country, we think this landmark research provides a valuable public service,” said NVAR 2010 president, Linda Rheinberger, broker and owner of One Source Realty and Management in Las Vegas. “We think this research will help the public, the real estate industry, lawmakers, and others grappling with this difficult issue.”

”The report cites that 61 percent of those surveyed after experiencing or narrowly avoiding foreclosure had never heard of the federal Home Affordable Foreclosure Alternative (HAFA) program.  By their own admission, 23 percent described their situation as a strategic default. Many of those who “walked away” from their homes said they were advised by trusted confidants that a strategic default was their best option.” [Emphasis Added.]

Ken here. Alas, the “trusted confidants” have no idea of how to proceed, and should not be offering “old school” advice. “Strategic default” used to make sense, before it was discovered that nearly all loans are illegal due to massive industry wide violations of Securities Law.

Article continues.
“As for solutions, there may not be a single cure-all, but this report suggests that we can do more to make distressed homeowners aware of the free and low-cost resources available to help them,” said Rheinberger. “It also reinforces our belief that lenders would do well to speak to their customers before foreclosing and to continue streamlining their short sale processes since short sales are one viable alternative to foreclosures.”

”Mike Young, NVAR president for 2011 and a Nevada Realtor, said NVAR is working with Nevada lawmakers to seek changes that could help. According to the report, these include a mix of legislative amendments, advocacy and counseling options, and actions designed to stabilize local housing markets, such as streamlining short sales.”

Ken here. Ah yes, spoken as a true REALTOR (we used to be one, and still have an active unblemished Real Estate License in California), who seeks commissions from “short sales” and have no understanding, or desire of understanding, that the new way to deal with loan servicers and loan originators is to bring actions against them based on Securities Fraud.

This is whether the homeowner is in a Non-Judicial (no recourse) state and initiates a “quiet title” action, ultimately seeking a settlement with a principal reduction to current value.

Or, is being foreclosed-on in a Judicial (recourse) state, and in its defense, based on a Securities Audit, also asserts a claim for punitive damages, and, may seek guidance from the court regarding a criminal fraud referral (state or federal). Always a stretch, and dependent on counsel’s experienced opinion as to sympathies of a given judge.

At the same time, it is always wise to fairly and professionally warn Banksters and loan originators (whoever is bringing forward a foreclosure action), prior to a judicial forum, through legal counsel, that federal and state law enforcement officials will be made aware of arguably criminal and illegal fraud, documented amply through the complete record regarding each individual mortgage. The pertains particularly to the paper trail of “Securitization,” which most often gives clear evidence that the chain-of-title has been broken, and no one, has the legal standing to foreclose.

Disclaimer: Clearly, we are NOT attorneys and do not offer legal advice. Check with a knowledgeable “borrower or consumer foreclosure” attorney if you have foreclosure or mortgage issues.

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