On May 29, 2011 the governor of Nevada passed the Nevada Assembly Bill 373 (NV AB 373). This bill, “Prohibits the destruction of real property that is subject to foreclosure with the intent to defraud.” In other words, it is now a misdemeanor to intentionally damage a foreclosed home. Whether you own the home or are renting the home, anyone who strips a foreclosed home or purposefully damages it is looking at up to four years in prison or up to $5,000 in fines.

The photos below were taken from one of our bank owned properties. Nearly anything that could be sold for cash was stripped from the inside of this bank owned home and what wasn’t taken was intentionally damaged, leaving the bank with nothing but a big mess.

Violators (especially disgruntled homeowners) are damaging their property in order to stick it to the bank and it does. The banks in turn have to sell the damaged property at an even lower price causing an even steeper decline on the value of surrounding homes. Banks by in large do not spend extra money fixing up a property to sell. You can see what kind of predicament this bitter trend of stripping is having on the market. At least now there will be penalties.

Many Las Vegas real estate residents believe that it will be very difficult to prove who actually did the damage if they are not caught in the act. There have been numerous reports of vandals simply breaking into vacant homes (foreclosed or not) and stripping the home to bare bones. Again, it may be hard to prove.

Regardless, the bill is now in effect. We’ll just have to wait and see how it all pans out. I think awareness is heightened enough that we will see people getting caught red-handed.

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