Browsing: nevada mortgage mediation law

Investor Financing & Creative REI
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Several months ago I mentioned Nevada was finally joining the 21st century in regards to foreclosure mediation. The first two sessions – Nevada doesn’t jump into these things – will happen on Sept 14th with two properties in Las Vegas as the “test” properties.

I know other states have already set up their mediation programs and have been up and running with what some say is a great success rate, i.e. the homeowners got to stay in their homes. In fact, Marquette University Law School on their website makes this comment: “…jurisdictions that have used mediation in foreclosure cases report a high success rate, and more and more jurisdictions are turning to mediation as a solution for this crisis.”

Because Nevada is the turtle in this race only 97 mediators have completed training and were appointed last week (Aug 17-21). The State expects to phase in more mediators over the next few months. They better if they are to be in compliance with state law and put out a program designed to help distressed property owners.

Mediations Per Month

I didn’t do any research to determine how many mediations Ohio or New Jersey, or any other state for that matter, are doing per month but Nevada expects to do more than 1,000 mediations per month once the program is operating at full capacity. This seems like a reasonable figure given to date the program manager has received more than 650 requests. Plus, with Nevada’s high foreclosure rate, mediation only makes sense for anyone wanting at least a chance to stay in their home.

Investor Financing & Creative REI
3

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.

Nevada CapitolTo 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?