Nevada has implemented a new program to help prevent home foreclosures. The Supreme Court has set up guidelines for a new statewide assistance program that is designed to decrease the amount of foreclosures in Las Vegas and the rest of the state.
There is a minimum fee that needs to be divided between the mortgage server and the borrower. Both the lender and homeowner will only have to pay $200 to participate in the new Nevada foreclosure mediation program.
Mediators who preside over counseling sessions will receive at least four hours of professional training. Over 400 attorneys, paralegals, HUD certified housing counselors and other professionals have expressed interest in working as mediators to provide help, advice and knowledge.
Is foreclosure mediation required in Nevada?
Yes, it is correct. The new rules state that if a homeowner who receives a foreclosure notice requests mediation within a certain time frame, the bank or lender must participate in the mediation program. Once the mediation or counseling is requested by the homeowner, a professional mediator will be assigned to oversee the meeting between the lender and homeowner, according to the rules set by the state.
There are some requirements that the homeowner must meet. The Nevada supreme court rules say that the homeowner must live in the home in order to be eligible for the new foreclosure mediation program. The owners who have filed for bankruptcy may not be able to get help.
The aim of this program is to help homeowners who are in danger of foreclosure. If a homeowner receives a foreclosure notice, they can ask to meet with the bank or lender, as well as a trained mediator. The hope is that they can come to an agreement, such as a loan modification, refinancing, short sale, or other options. There are other government programs that can help if you are facing foreclosure.
The state is currently expecting between 1,500 to 2,000 requests for mediation per month, with many of those requests expected to come from the cities of Las Vegas and Reno. The demand for this service has been high over the first few years, and hundreds of families have been helped. Other people who can help you if you are in need are paralegals and housing specialists. Nevada HUD counseling provides housing counseling services to residents of Nevada. HUD-certified housing counselors help Nevadans with renting, buying, and maintaining their homes. Counselors also provide assistance to homeowners who are struggling to make their mortgage payments.
The new regulations will start in August, but the program is still running today. A homeowner who receives a foreclosure notice can request a mediation session with the financial institution in an attempt to modify the loan. The person who holds the note must go to the meeting.
This means that if you received a foreclosure notice before July 1 2010, you can still try to work things out with your lender through mediation, as long as both parties agree to it.
We will look at all of the possibilities. The three possible outcomes of the Nevada mediation process are a loan modification, a short sale, or a Deed in Lieu of Foreclosure.
To learn more, call 702-430-6386.