FORECLOSURE

NEVADA PERSONAL RESIDENCES

AS OF JULY 1, 2009

 

A follow up to the April 27, 2007 Foreclosure / Deficiency blog.

IMPORTANT FORMS

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:

  1. A Financial Statement and Housing Affordability Worksheet to include the information set forth in forms provided by the Administrator. (Form does not exist yet).
  2. Confidential nonbinding proposal for resolving the foreclosure.
  3. 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:

  1. 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.
  2. Most current and appropriate appraisals that it has.
  3. 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.
  4. 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.