The Nevada State Legislature recently passed the mortgage mediation law great fanfare. The law was expected to save as many as 17,000 Nevada homeowners from foreclosure. The law, which went into effect July 1st, allows homeowners in default to request a mediation hearing with the lender.
To be eligible a homeowner must have received a notice of default after July 1, 2009. The homeowner must pay a fee of $200 if they request a hearing and the lender is also required to pay a $200 fee. In anticipation of a flood of requests, the state has trained in excess of 100 lawyers and ex-judges to handle the cases.
Where is Everybody?
The official estimates were that between 1,250 and 1,500 homeowners per month would participate in the program. However, after six weeks there have been a total of ten requests. Not ten per day or ten per week, just ten total. That amounts to 1.67 requests per week! How did they get it so wrong?