Mandatory Mediation

Nevada law allows any homeowner receiving a notice of default from their lender to request mandatory mediation with that lender.  The purpose of the mediation program is to avoid a foreclosure by providing a forum for home owner and lender to negotiate a loan modification including a short sale. The most important development is that the lender must be represented at the mediation hearing by a representative who has authority to modify the loan or who has telephone access to someone with such authority. The lender’s failure to do so may result in the mediator modifying the loan.

The Truth About Mediation

The mediation is not binding. The lender has the final say as to whether to modify the loan and, if so, on what terms. However, a trustee’s sale of the home may not occur until the mediation is completed. The trustee’s sale is the final step in the foreclosure process.

Costs of Mediation

The cost of the mediation is $400 divided equally between the homeowner and the lender. This is in addition to the fee your attorney will charge you for assisting you the mediation.

Other Mediation Guidelines

The maximum period of time allotted to a mediation session is four hours. The homeowner must provide a financial statement together with a Housing Affordability Worksheet. The lender must provide a certified copy or original of the Deed of Trust and promissory note together with a copy of each assignment of the note and deed of trust. The lender may also provide an estimate of the short sale value of the property if the loan cannot be modified.