Last month, we spoke about home foreclosure. If you are about to be in the throes of the nonjudicial foreclosure process, I informed you to don’t give up because there is still hope. Have you heard of the Nevada Foreclosure Mediation Program? The Foreclosure Mediation Program or “FMP” is a process where Homeowners and Lenders meet in person with a Mediator to speak about ways to avoid foreclosure. The Mediator is a neutral person who tries to help the Homeowner and Lender come up with a fair and voluntary agreement. FMP affects homeowners in owner-occupied properties who are served a notice of default and Election to sell recorded on or after July 1, 2017. Homeowners served before July 1, 2017, can go through the process if the lender consents in writing.
If you have you received a Notice of Default within the last thirty days or you received a Complaint about Judicial Foreclosure within the last twenty days, and you are interested in participating in foreclosure mediation, visit the Petition for Foreclosure Mediation Assistance page for a step-by-step guide. Do not wait! If the process has gone too far, it may be too late to stop the foreclosure of your home.
If you petition for foreclosure mediation assistance within the appropriate time, the lender may not foreclose until mediation has been completed. Once mediation is scheduled, the actual mediation meeting is fairly fast (less than four hours), inexpensive ($500, paid equally by the parties), and less formal than other legal processes. The goal of the program is to make foreclosure the last resort for the lender.
In short, you will file a Petition for Foreclosure Mediation Assistance at the district court clerk’s office, pay a $250.00 mediator fee and a $25.00 filing fee, then mail copies of your petition to the lender, trustee, and Home Means Nevada. The Supreme Court established Home Means Nevada, Inc. as the mediation administrator for the Foreclosure Mediation Program. If you timely file the petition, no further action can be taken to sell your home until completion of the mediation. (NRS 107.086.)
After filing your petition, you will receive a notice appointing a mediator. The mediator will arrange a time and place for the mediation. The mediator will send you a scheduling notice explaining what documents you must produce and how to exchange them with your lender before the mediation.
Three parties will be present at the mediation: you, the lender, and the mediator. Both you and the lender must negotiate in good faith regarding alternatives to foreclosure. Usually, alternatives to foreclosure include (i) loan modification or repayment plan, (ii) short sale or (iii) giving the property up (a “deed-in-lieu”). You will tell them what you want and show them what you can afford. If you reach an agreement, the mediator will help you outline the terms of the agreement.
The mediator will issue a Mediator’s Statement within ten days of the conclusion of the mediation. Within ten days of that statement, either side can submit a request or an objection. The District Court judge then enters an Order that reflects the terms of the loan modification if one was reached, and the new terms under the loan modification will begin. If no loan modification or other agreement was reached, the judge will dismiss the case. The order dismissing the case will be served on Home Means Nevada, who will then issue a certificate to the trustee to proceed with the foreclosure.
But remember, if you have received a Notice of Default within the last thirty days or you received a Complaint about Judicial Foreclosure within the last twenty days, TIME IS OF THE ESSENCE IN TRYING TO SAVE YOUR HOME FROM FORECLOSURE!!!