Nevada has implemented a new program to help slow down or prevent unneeded home foreclosures. The Supreme Court has implemented rules and regulations for a new statewide assistance program that is aimed at stopping the record number of foreclosures in Las Vegas and elsewhere across the entire state.
There will be a minimum fee that needs to be split by the mortgage server and the borrower. Participation in the new Nevada foreclosure mediation program will cost both the lender and homeowner a mere $200.
Professional and highly trained mediators who preside over the counseling sessions will undergo at least four hours of training. Over 400 attorneys, paralegals, HUD certified housing counselors and other well qualified professionals have expressed interest in working the sessions as mediators to try to provide their help, advice and knowledge.
Yes. The new rules state that participation in the mediation program is mandatory for the bank or lender when a homeowner who receives a foreclosure notice requests mediation within a certain time frame. Once the mediation or counseling is requested by the homeowner, a mediation administrator or the local counrt system will assign one of the professional mediators to oversee the meeting between the lender and homeowner, according to the rules set by the state.
There are some conditions for the homeowner. In order to be eligible for the new foreclosure mediation program, the Nevada supreme court rules say that the homeowner must occupy the home. Also, any owners who have filed for bankruptcy protection may be prohibited from receiving aid.
Under this program, any homeowner who lives in the home and who receives a foreclosure notice can request an opportunity to sit down with the bank or lenders, as well as a trained mediator, and they can explore whether a mutually agreeable resolution can be reached, such as a loan modification, refinancing, short sale, or other options. Find additional government foreclosure programs.
Currently, the state expects between 1,500 to 2,000 requests for mediation per month, many of which are expected from Las Vegas and Reno. Over the first few years the demand for this service has been very high, and hundreds of families have been helped. Paralegals and housing specialists are also on call to provide help to the needy. Read more Nevada HUD counseling.
While the new regulations take effect July 31, 2010, sessions will start in August and the program is still running today. A homeowner who receives a foreclosure notice of default can request an immediate mediation session with the financial institution in an attempt to modify the loan. The holder of the note, who is really the bank or some other private institution, must attend the session.
In addition, another huge benefit is that the rules state that those who received foreclosure notices before July 1 2010 can still seek voluntary mediation if both sides agree to this.
All options will be explored. Some of the outcomes of the Nevada mediation process can include a loan modification, a short sale, or a Deed in Lieu of Foreclosure.
Dial 702-430-6386 to learn more.
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