FORECLOSURE
NEVADA PERSONAL RESIDENCES
AS OF JULY 1, 2009
A follow up to the April 27, 2007 Foreclosure / Deficiency blog.
IMPORTANT FORMS
- Election to Mediate
- Mutual Agreement to Mediate (if NOD filed prior to July 1, 2009)
- Trustee Brochure
- Rules of Mediation
- Assembly Bill 149
CREATING THE PROGRAM
Assembly Bill 149 was passed by the Nevada Legislature during the 2009 session and signed by Governor Jim Gibbons. Its purpose is to address the foreclosure crisis head-on and to help keep Nevada families in their homes.
This law establishes a Foreclosure Mediation Program for owner-occupied residential properties that are subject to foreclosure notices – formally known as a Notice of Default and Election to Sell – filed on or after July 1, 2009.
WHAT IS MEDIATION?
Mediation is an alternative method to help parties resolve disputes by agreement with the help of trained mediators. Mediating a foreclosure action has its advantages. It is fast, inexpensive, and offers a flexibility that more formal processes do not. Home foreclosures impact both the homeowner and the lender. Homeowners do not want to lose their homes and mortgage lenders do not want to be in the real estate business. Both sides may benefit through foreclosure mediations.
WHO IS ELIGIBLE?
The home must be your personal residence, be located in Nevada and you must occupy the property. Timeshares are not covered, converted mobile homes are.
WHAT IF I AM TRYING TO SELL MY HOME IN A SHORT SALE?
The rules address this and require the Lender to bring to mediation an estimate of “short sale” value of the residence that it may be willing to consider as a part of the negotiation if loan modification is not agreed upon. So it may be a good idea to participate to assist your Short Sale along.
WHY SHOULD YOU MEDIATE?
You can play a major role, with the help of a trained mediator, in deciding the outcome of your individual dilemma. Mediation is a give-and-take process in which the parties work to reach a mutually acceptable resolution to a mutual problem. Resolutions reached through foreclosure mediations are compromises that offer advantages to lenders as well as homeowners.
If you have the ability to meet the other party half way, everyone may benefit.
- Can you, as a homeowner, make your mortgage payments if your home loan is modified?
- Can you, as a lender in today’s real estate market, modify a loan to the extent that the homeowner can perform?
If the answers are YES, the Foreclosure Mediation Program may be able to save A Nevada home.
WHAT ARE MY DEADLINES?
The owner of the property (title holder) must, not later than 30 days after the service upon him or her of the notice of default deliver the Election/Waiver of Mediation Form and deliver the form the trustee, by certified mail, return receipt requested & you must mail a copy of the Election/Waiver of Mediation to the Administrator.
WHAT IF MY NOTICE OF DEFAULT WAS SERVICE PRIOR TO JULY 1 209?
You may only participate if the Lender agrees in writing, and you must provide the Administrator a copy of the agreement. Example agreement located HERE. [attach].
WHAT DO YOU BRING TO MEDIATION?
Homeowners must bring:
- A Financial Statement and Housing Affordability Worksheet to include the information set forth in forms provided by the Administrator. (Form does not exist yet).
- Confidential nonbinding proposal for resolving the foreclosure.
- Perhaps You Should Bring?
- Your own CMA, comparative price analysis, or a BPO , broker price opinion, from your Prudential, Americana Group, REALTOR® to indicate the current value of the home.
- Proof you are involved in a short sale listing, if you are.
Lenders must bring:
- The original or certified copy of the deed of trust, the mortgage note, and each assignment of the deed of trust and the mortgage note.
- Most current and appropriate appraisals that it has.
- An estimate of “short sale” value of the residence that it may be willing to consider as a part of the negotiation if loan modification is not agreed upon.
- Confidential nonbinding proposal for resolving the foreclosure, including the evaluative methodology use in determining the eligibility or non-eligibility of loan modification.
Both parties can bring lawyers, friends, interpreters, relatives, to support you at the mediation.
WHAT ARE THE COSTS?
$200 for each ‘side.’ If you are married and own the home with your wife, it is still only $200 for your side. Each party must pay $200 by certified check at the time the election to mediate is mailed in.
A lawyer is not required to be present with you in the mediation process, but each side is welcome to have an attorney represent them. If you want an interpreter, you must pay for this on your own.
WHAT ARE TIME FRAMES:
Mediations are limited to four hours and require that mediations be conducted within 90 days of a foreclosure notice being filed. Also all decision makers must be present for the mediations. That means, if an agreement is reached, it can be finalized quickly.
AT THE CONCLUSION OF THE MEDIATION …
Within 10 days of the mediation, the mediator will prepare the necessary Statement of Agreement or Non-agreement and serve it on the parties. The original will be filed with the Foreclosure Mediation Program Administrator and the mediation will be closed. If there is an agreement, the parties will execute the appropriate documents. If there is no agreement, the parties will be free to pursue other legal remedies.
October 16, 2009 at 11:44 am
[…] NV Mediation Program and How it Affects Shortsale […]
November 17, 2009 at 5:20 pm
Has anyone had great results from the AB149 Mediation?
November 19, 2009 at 4:00 pm
Great…is a difficult word. I am aware of many succesful mediations with amended loan terms to allow an owner to keep their home. There are approx. 3,500 pending mediations.
June 30, 2012 at 5:10 pm
Hello,
I exercised my rights to mediation to no avail None of the three attorneys could even discuss a settlement strategy as BofA was unprepared and not able to act. Ended up short selling my home with a net loss of my life saving approximately $250k. Hope it helps some!
February 4, 2010 at 8:38 pm
I just got finished with a mediation and the lender (one west bank/indymac)had a person on speaker phone,along with myself and my wife and the mediator and a trustee for the title co. about 5 minutes into conversation of what options I had, the lender starting bad mouthing the mediation process and how it was just letting borrowers like myself take advantage of the system just to live rent free. I spoke up and said excuse me I am here trying to work out a modification in order to stay in the house, he obviously did not care me and my wife were sitting there listening to what he was saying. When it came down to us agreeing on a amount, 31% of my gross income, the lender said he could not confirm that amount would work and he would have to send us something in a couple weeks letting us know. the mediator asked why can you not make a decision now and he said because he did not have a recent appraisal of the property, “that he was required to have for the meeting”. The mediator said that he would have to document that their was no final agreement made, and the lender said,”write down what ever you want”. I was told after the meeting that the next step would be for the mediator to send in his statement of the hearing to the judge but the judge can still just sign it off and lender can move forward with the foreclosure sale. I was very saddened with mediation and the lenders attitude.
March 5, 2010 at 9:18 am
[…] Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale […]
October 8, 2010 at 9:38 am
[…] Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale […]
December 3, 2010 at 3:44 pm
[…] Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale […]
April 11, 2011 at 11:09 am
[…] Nevada Supreme Court Mandatory Mediation Program and How it Affects Shortsale […]
May 12, 2011 at 7:52 pm
The mediation was a waste of my $200.00 and the states match. The Bank of America did not have their documents and would not agree to anything except filing an additional application for a deed in lieu which was denied 2 days later.
Frustrated and sick
March 12, 2012 at 8:47 am
Home Business Scam What you need to know about home business scams…
[…]TGIF Legal Tip: Mediation Option for Nevada Foreclosures « Nevada Residential Real Property Law[…]…
October 1, 2012 at 6:35 pm
[…] trustee ReconTrust, BNY Mellon’s trustee, physically possessed the note a the time of the Nevada Supreme Court Mediation and used their servicer Bank of America as their representative in the Nevada Supreme Court […]
January 3, 2013 at 4:56 pm
[…] Mediation Program has been updated dramatically. I first wrote about this on July 10 2009 under Mediation Option for Nevada Foreclosures. […]
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