Lisa and Jim's Northern Nevada Real Estate Blog: Nevada Foreclosure Mediation ... Assembly Bill 149

Nevada Foreclosure Mediation ... Assembly Bill 149

Nevada Foreclosure Mediation  

The Nevada Legislature passed Assembly Bill 149 in 2009 with the purpose to address the foreclosure crisis head-on and to help keep Nevada families in their homes.  The Mediation process rules were implemented by the Nevada Supreme Court, and they are also charged with administering the process.  They worked hard at making a viable system, and recently proposed a series of changes to make the process more effective and fair. 

If you, or somebody you know, has had a Notice of Default filed on your home it is important that your not play ostrich.  That is the most common response by owners of distressed properties, put the noggin in the sand and wait for the storm to blow over.  It won't, and if you don't act to protect yourself you may be out on the street in short order.  The Mediation process has time constraints and it is important that you meet the deadlines.  For instance, once you have been given notice of the Mediation, you must respond by completing and submitting the Election/Waiver of Mediation along with the fees within 30 days, or you will lose your right to Mediation. 

Here is a summary of the more important aspects of the process:  a. It applies only to owner-occupied properties located in the State of Nevada, not rentals and not vacant land., b. If the property owner requests Mediation it is mandatory except: i) where the owner has already surrendered the property to the lender, ii) the owner has filed bankruptcy and the court has not closed or dismissed the case, or granted relief from the automatic stay of the foreclosure., c. The law applies to properties that had a Notice of Default (NOD) filed after July 1, 2009, but if the Owner and Lender agree they may enter the Mediation Program and be governed by the rules of the process., e. The application fee is $200 per side, Borrower and Lender paid by the respective parties., f. Homeowner must prepare a Financial Statement and Housing Affordability Worksheet. 

Some of the proposed changes include: a. The mediator may accept a broker's price opinion (BPO) in lieu of a fee appraisal, b. All mediators must be licensed to practice law in Nevada., c. Time for holding and actually completing the Mediation hearing will be extended to 135 days., d. The program-approved forms must be completed accurately with no cross-outs or modifications by either party., e. Requirement that a Certificate from the Foreclosure Mediation Administrator be recorded prior to a foreclosure sale on any owner-occupied housing. These will be granted if a request for Mediation was not filed.  

Our advice:  Go check out the rules of the game if you are in this situation.  You can get a lot of information on the Supreme Court website,  The rules are there, a FAQ site, Espanol Informacion, articles and forms.  Be informed and make good decisions.  Not everyone will qualify for Mediation, but if you don't try you definitely won't realize the benefits of the program.  Mediation can be good for Borrower and Lender - its fast, inexpensive, and offers flexibility that more formal processes do not.  If it doesn't work there are other remedies, i.e.- Short Sale, Foreclosure, Deed in Lieu, etc. 

Don't hide your way out of your house.  Take charge of your life.  These are unique times and you are but one of millions of people in your present predicament.  You are not alone ... unless you choose to be.  Get the dirt out of your eyes and call your agent to help you evaluate your options.

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!  Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Comment balloon 0 commentsLisa Wetzel • April 08 2010 06:59PM

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