I-Team: Realtors Looking for Answers for Homeowners - 8 News NOW

I-Team: Realtors Looking for Answers for Homeowners

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LAS VEGAS -- Local realtors are struggling with what to tell Nevadans worried about their new home's title after last week's robo-signing indictments. The I-Team has followed the widening impact of the Nevada Attorney General's case against two title officers accused of forcing signatures.

There are two similar problems happening at the same time. On one hand, Nevadans are uncertain if legal cases against title fraud throw their own home's title in doubt. On the other hand, a new law meant to ensure banks have their paperwork in order is now grinding the state's foreclosure process to a near halt.

The whole uncertainty could last months according to a conference call that took place Monday with the Nevada Association of Realtors.

Assembly Bill 284 went into effect October 1, 2011 and it forces banks to provide evidence they have clear title to the home before a court-mandated mortgage mediation. It has resulted in banks reducing their foreclosure notices by 96 percent in the past month. Banks are in the process of changing their foreclosure methods to comply with the new law.

"I think that's what 284 is all about. It's to make sure the title is clean and the person that is filing the notice of default is the one that is indeed foreclosing. I don't think there's a backlog. The title companies are going to make sure that this happens. That's what you have title insurance for so that you have that assurance," said Mike Young, NVAR president.

Two former lender processing services employees were indicted last week for alleged robo- signing. The state Attorney General's office accuses Gary Trafford and Gerri Shepperd of paying employees to forge tens of thousands of signatures on foreclosure documents.

Lender Processing Services says those "flawed documents" did not result in any wrongful foreclosures. The Nevada Attorney General's office emphasizes they've only revealed less than one percent of the cases they are investigating.

As for the new Nevada law, a similar California law took three months to sort out and get foreclosure notices per month back to expected levels.

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