Nevada Servicemember Foreclosure Bill Introduced in Senate
Updated 4/18/17: S.B. 33 passed the Senate and has been sent to the Assembly.
Updated 4/5/17: On March 16, S.B. 33 was amended and passed by the Senate Judiciary Committee.
Link to Legislature *Current amended text not yet available.
December 1, 2016
Legislative Counsel’s Digest:
The federal Servicemembers Civil Relief Act, 50 U.S.C. § 3901 et seq., generally provides for the temporary suspension of certain judicial and administrative proceedings and transactions that could adversely affect the civil rights of a servicemember during his or her military service. (50 U.S.C. § 3902)The Act provides that in any action filed during, or within 1 year after, a servicemember’s period of military service to enforce an obligation on real or personal property owned by a servicemember that: (1) originated before the period of such military service and for which the servicemember is still obligated; and (2) is secured by a mortgage, trust deed or other security in the nature of a mortgage, a court is generally authorized or required, depending on the circumstances, to stay the proceedings or adjust the obligation to preserve the interests of all parties. The Act further provides that absent a court order or agreement, a sale, foreclosure or seizure of property for a breach of any such obligation is not valid if it is made during or within 1 year after the period of the servicemember’s military service. Any person who knowingly makes or causes to be made a sale, foreclosure or seizure of property in violation of such a provision, or knowingly attempts to do so, is guilty of a misdemeanor. (50 U.S.C. § 3953) Additionally, the Act provides that upon application to a court, a dependent of a servicemember is entitled to the protections offered to a servicemember if the ability of the dependent to comply with certain obligations is materially affected by the servicemember’s military service. (50 U.S.C. § 3959)
The provisions of the Act that grant protection from a sale, foreclosure or seizure of property for a period of 1 year after a servicemember’s military service currently remain effective until December 31, 2017, and on January 1, 2018, the period of protection will decrease to 90 days. (Section 710(d) of the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012, Public Law 112-154, 126 Stat. 1208; section 2 of the Foreclosure Relief and Extension for Servicemembers Act of 2015, Public Law 114-142, 130 Stat. 326)
This bill grants under Nevada law the period of protection currently provided under federal law. Section 1 of this bill provides that if a mortgagor or grantor of a deed of trust under a residential mortgage loan is a servicemember or, in certain circumstances, a dependent of a servicemember, a person is prohibited from conducting a foreclosure sale during any period the servicemember is on active duty or deployment or for a period of 1 year immediately following the end of such active duty or deployment. Section 1 also provides that in any civil action for a foreclosure sale that is filed against a servicemember or, if applicable, a dependent of a servicemember while the servicemember is on active duty or deployment or during the 1-year period immediately following the end of such active duty or deployment, the court is authorized or required, depending on the circumstances, to stay the proceedings in the action for a certain period or issue an order that conserves the interests of the parties unless the court determines that the ability of the servicemember or dependent to comply with the terms of the obligation secured by the residential mortgage loan is not materially affected by the servicemember’s active duty or deployment. Section 1 further provides that any such protection against foreclosure only applies to a residential mortgage loan that was secured before the servicemember was called to active duty or deployment. Finally, section 1 provides that any person who knowingly conducts a foreclosure sale in violation of the provisions of section 1 is guilty of a misdemeanor and is liable for actual damages, reasonable attorney’s fees and costs incurred by the injured party.
Source: Nevada Legislature (information and full text)