Snapshot of the Nevada Mediation Program and its benefits
As some of my readers may be aware of, I am currently one of only two real estate agents to be appointed by the Nevada Supreme Court to sit on the Foreclosure Mediation Program’s advisory committee. As a committee member, I believe I can offer a unique insight into the program and its benefits. Should you have any questions about the program, I invite you to contact me. You will find my contact information at the bottom of this post.
Homeowner Brochure.pdf
The following is brief snapshot of the program:
Made effective In October of 2009, the Nevada Mediation Program gives homeowners facing foreclosure the option to mediate an alternative to foreclosure. Since the program came into existence, it has successfully helped many homeowners find a solution with their lenders, who otherwise would have suffered a foreclosure. The program has seen an increase in applications, however there are still many borrowers who fail to see the value of the program, and therefore do not elect to mediate. Although there is no guarantee the program will provide borrowers with the help they need, I do believe a many of these homeowners would see the value of participating in mediation if they had a better understanding of the program.
Mediation Timeline
– Borrower is in default and a Notice of Default & Election (NOD) to sell form is recorded by their lender with the County Recorder.
– Along with a copy of the NOD, an Election/Waiver of Mediation is sent to the borrower
– If the home owner occupied as a primary residence (otherwise mediation is not available), the borrower has up to 30 days to elect meditation by completed the Election form and returning it with all required documentation outlined in the instructions included with the form. There is also a $200 fee that must accompany the form. If borrower elects for mediation, the foreclosure process may not continue until the lender is issued a certificate of completion.
– Once the borrower elects mediation, the Trustee must then also then notify the program of their participation in the program along with their $200 fee.
– Program Administrator or designee assigns a mediator the file.
– Mediator schedules mediation date with both parties involved.
– Lender & Homeowner exchange required documents within the timeframe listed in Rule 8 of mediation.
– Mediation is conducted, and mediator issues a mediator’s statement to the program administrator.
– Trustee may then request their certificate of completion.
– Program Administrator will either issue or deny to issue a certificate.
– If either party is not satisfied with the outcome, they may file a petition for Judicial Review with the District Court.
Mediation and its Role
Mediation is a method to help parties resolve their disputes with the Help of a trained mediator.
The mediator involved is an independent and neutral third party whose function is to guide the discussion in a manor that will result in a desirable outcome for both parties (i.e.: a modification). The mediator is also present to ensure that all parties provide certain required documentation to the other parties involved, and that all parties follow the rules of the mediation program. (The rules of the foreclosure mediation program were set by the Nevada Supreme Court, and have been amended several times since the program began. For a copy of the most current rules of mediation, please visit: www.nevadajudiciary.us).
At the conclusion of the mediation, the mediator will prepare a statement that will include any agreement made between the parties. This statement will also indicate whether or not either party provided all their necessary documents, followed the rules, and whether or not either party were acting in good faith. The mediator’s statement will play a vital role in the administrator’s decision to either issue or decline to issue a certificate of completion to the lender. If a certificate is not issued, foreclosure may not continue.
Reasons to elect mediation:
– If borrower elects mediation, the lender or their representatives must attend and participate in good faith.
– Until mediation occurs, the foreclosure process is postponed and may even be canceled.
– In many cases, a resolution may occur that would have been impossible or very difficult through the lender’s normal borrower assistance programs.
– If a modification still isn’t a possibility, other terms may be negotiated to allow a graceful exit from the property. These other terms may include a short sale, Deed in Lieu of Foreclosure, or even just additional time to allow the borrower to move.
– Possibility of having the outcome determined through a judicial review, if you disagree with the outcome of mediation.
Related Post:
Foreclosure Timeline
Foreclosure Prevention Options
Consequences of Foreclosure VS. Short Sale
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com
Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
Legal disclaimer: I am not an attorney, tax professional, or credit counselor. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal, tax, or credit advice. You should not act upon this or any information without first seeking independent tax and/or legal counsel.
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