In the 2009 session of the Nevada Legislature, AB 149 amended Chapter 107 of the Nevada Revised Statutes. This piece of legislation was aimed to provide both homeowners and lenders with a fast, inexpensive, and cost effective process to reach a mutually acceptable resolution in lieu of foreclosure.
The Nevada Supreme Court passed Rules governing the Foreclosure Mediation Program (FMP). A mediation must take place within 135 days of the homeowner's request for mediation. The homeowner must request mediation within 30 days of receiving a Notice of Default. A $200 non-refundable mediation fee, and required Financial Statement and Housing Affordability Worksheet must be submitted.
The lender must also submit a nonrefundable mediation fee of $200 and other required documents. Among these documents, the lender must provide to the mediator and homeowner at least 10 days prior to the mediation: original or certified copy of the deed of trust; mortgage note; and each assignment of the deed of trust and mortgage note. The lender must also provide an appraisal and/or a Broker’s Price Opinion (with prior approval by the mediatordated ) not more than sixty (60) days from the date of the mediation; a confidential proposal to resolve the foreclosure; and the evaluative method used to determine eligibility/noneligibility for a loan modification.
Both parties must mediate in good faith. However, if either party is not satisfied with the outcome of the mediation, the Lender or the Homeowner may file a Petition for Judicial Review. The Petition for Judicial Review must be filed within fifteen (15) days of receipt of the mediator’s statement. Petitions must be filed with the District Court in the county where the notice of default originated.
Do you think that the FMP will be effective in providing homeowners and lenders with an long-term alternative to foreclosure?
I think it's a good idea, but I'm not sure how well it will work right away. Maybe the potential is there for it to work, but I'm sure it's still hard to tell the true results of the FMP.
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Thank you for the comment. The figures from the Nevada Supreme Court foreclosure program indicate that not many homeowners are utilizing the program in lieu of foreclosure. But these numbers were released shortly after the program took off last year. I agree that there is a strong potential for it to work and when there are more success stories and permanent modifications, it will really take off.
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