Nevada 4:34

UPDATE*** May 31, 2013

The foreclosure mediation process will soon be amended to INCLUDE judicial foreclosures.  It is within the new SB 321 (not yet signed by the Nevada Governor).  Section 18 of SB 321 provides that in a judicial foreclosure action concerning owner-occupied property, the mortgagor may elect to participate in the Foreclosure.

UPDATE*** May 31, 2013

 

The Nevada Foreclosure Mediation Program has been updated dramatically.  I first wrote about this on July 10 2009 under Mediation Option for Nevada Foreclosures.

The entire new rules effective December 6, 2012 can be found here at the Nevada Judiciary website.

Document Exchange – Likely the best change is that the documents exchanged between the Lender (Beneficiary) and the Homeowner are to be better organized and debated, discussed, etc., prior to the actual mediation.  This allows the mediation a better chance to more effective (successful) in potentially producing a loan modification, short sale, informed surrender of the home, etc.

Short Sales – The Short Sale section is also amended.  While the early exchange of documents is likely the best change so far to the rules, the Short Sale rules are also exciting. Short sales are exciting in general.  This may move to the level if spicy.  If the goal is a short sale, the homeowner may have a new helpful rule to succeed.  In § III(10) “REQUIRED MEDIATION DOCUMENTS”  it states in part

§(III)(10). The beneficiary of the deed of trust (lender)  shall …prepare an estimate of the ‘‘short sale’’ value of the residence that it may be willing to consider as a part of the negotiation, and shall submit any conditions that must be met in order for a short sale to be approved. The lender must also be able to negotiate the following:

(i) listing price,

(ii) date the property will be listed,

(iii) period of time the property will be marketed,

(iv) specified period lender has to determine whether to accept an offer, and

(v) maximum length of time escrow may last.

It continues …

(a) If the grantor (homeowner) fails to meet conditions within the period allowed by the conditions, the lender may submit a request to … issue a certificate to foreclose…”

But here is the exciting part:

(b) If the grantor (homeowner) believes that the lender failed to comply with the guidelines of the agreement for the sale, or that escrow did not close because lender’s action/inaction of trust, the homeowner may file a petition for judicial review pursuant to Rule 21.”

In other words…if there is an agreement to do a short sale at the mediation and the lender doesn’t follow the terms, a homeowner apparently can pull the lender into court and arrest a foreclosure and potentially force a short sale.

So a homeowner has a new incentive to get a commitment to shortsell at these Nevada Foreclosure Mediations.

See also

Foreclosure / Deficiency blog 4.27.2007

Income Taxes & Foreclosure/Short Sales 2013 Update 1.2.2013

Short Sales and Bankruptcy and Waiting Periods 10.5.2012

MERS and Foreclosure in Nevada 10.1.2012

Assembly Bill 149

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