Nevada Foreclosure Mediation Program
The Nevada Foreclosure Mediation Program has been helping homeowners prevent foreclosure since 2009. The program lets homeowners request mediation services within 30 days of receiving a notice of default from their lender. They must submit required documents, along with the $200 fee and a written proposal to resolve the foreclosure.
Rules of the Nevada Foreclosure Mediation Program require mediations to occur within 135 days of homeowners' written request. Lenders are also required to submit specific documents to the mediator and homeowner. These include an original or certified copy of the mortgage note and deed of trust.
Anyone who has faced foreclosure will probably agree that working with banks can be nearly impossible. Delinquent accounts are handed over to bank loss mitigators who are often overworked. It's not uncommon for paperwork to be lost and have to be resubmitted which drags the process out even longer.
By entering into mediation services, homeowners can sit down with a trained mediator to arrive at a workable solution. While there is no doubt we're in the midst of a foreclosure crisis, the magnitude of repossessed homes has forced banks to come up with alternative solutions that weren't available a few years ago.
Programs like Making Home Affordable offer several solutions to help homeowners resolve all sorts of problems. In addition to loan modifications and mortgage refinance, MHA offers programs that reduce principal balances and provide relocation funds to people who can't afford to stay in their home.
Fannie Mae recently introduced its Deed for Lease program that allows homeowners the option to return their house using deed in lieu of foreclosure and enter into a one year lease agreement as a tenant.
Mediators can assist homeowners with learning about available foreclosure prevention programs and negotiate with lenders to help them keep their home. If foreclosure isn't avoidable, mediators can help homeowners enter into a short sale agreement or give the house back using deed in lieu.
In its first year, the State of Nevada Foreclosure Mediation Program helped over 3,700 homeowners avoid foreclosure. Of those, nearly half entered into a loan modification or other agreements that allowed them to stay in their home.
Nevada homeowners in need of foreclosure mediation services can download a homeowner's packet that includes the required application forms at Foreclosure.NevadaJudiciary.US/.
It's important to note that Nevada homeowners are required to request mediation services within 30 days from the date they receive their notice of default from the bank. Additionally, homeowners must remit the $200 fee with their application.
The guidelines of Nevada's Foreclosure Mediation Program mandates that lenders must enter into good faith negotiations and reduce mortgage payments using loan modification or mortgage refinance for qualified applicants. It's vital to note that the key phrase here is "qualified." Homeowners must provide financial proof they can afford modified payments in order to stop foreclosure.
We invite you to learn more ways to prevent foreclosure and obtain additional details about the Nevada Foreclosure Mediation Program in our foreclosure prevention article library.