Foreclosure Mediation | Haines & Krieger

Foreclosure Mediation

Foreclosure Mediation

Foreclosure Mediation
Nevada Homeowners Can Request Mandatory Foreclosure Mediation

Good news for Nevada homeowners! Starting July 1, 2009, a homeowner in Nevada who has received a notice of foreclosure can request mandatory mediation with its mortgage lender in an effort to negotiate a loan modification.

This new option for homeowners in Nevada is a result of an amendment to NRS 107, also often cited as Assembly Bill (AB) 149. The rules that govern this new process will be developed and managed by the Nevada Supreme Court.

What does all of this mean for you?

Haines & Krieger has been closely studying and analyzing the creation of the foreclosure mediation requirement. As a result, we’re able to help our clients get the full strategic benefit of this new right to help them obtain a loan modification in certain circumstances.

The Nevada state government rightly recognizes that the high rate of foreclosure is a problem faced not just by individual homeowners, but by our society and economy as a whole. They realized that a lot of foreclosures could be avoided, and a lot of loan modifications negotiated, if homeowners and lenders could just have a chance to sit down and talk together.

So think of this new rule as one more card that homeowners can play to help them avoid foreclosure and negotiate a loan modification.

Homeowners (i.e., you must live in the home) who have received a foreclosure notice (“Notice of Default and Election to Sell”) can request a face-to-face meeting with their mortgage lender, assisted by a trained mediator, in an effort to find an alternative to foreclosure such as a loan modification.
Homeowners (i.e., owner-occupied homes) who received a foreclosure notice after June 30, 2009.
  • Homeowners who received a foreclosure notice before July 1, 2009. (Stay tuned, though. There may be options for homeowners in this category in the not-too-distant future.)
  • Non-homeowners (e.g., an investment property)
  • Homeowners who have already submitted their homes to a lender as part of the foreclosure process
A mediator is not a judge and does not have authority to order a resolution. A mediator is just an impartial person with experience who can often help two sides find a solution.
A homeowner has 30 days to request foreclosure mediation. The 30-day period begins the day the foreclosure notice is received. The homeowner must notify the trustee (which is usually the title company) by sending in the foreclosure mediation request form. You can get a copy of the foreclosure mediation request form:

After the trustee has been notified of the homeowner’s request, the foreclosure is stayed (i.e., temporarily stopped) for 90 days from the date of the foreclosure notice.

Within 80 days of the date of the foreclosure notice, the Supreme Court expects the parties to have a date, though the Court permits up to 90 days to allow for scheduling difficulties.
$200 for the homeowner, and $200 for the mortgage lender.

“Good faith” requirement
Both parties are required to act in “good faith.” This does not mean that the homeowner and lender must reach an agreement. However, it does mean:

    • That a homeowner may not initiate the foreclosure mediation process just for the purpose of delaying the foreclosure
    • It also means that the lender must show up. Also, it probably means that the lender must send a representative who has actual authority to negotiate

If either party does not act in good faith, then the mediator has the authority to recommend sanctions or other appropriate actions. For example, if a homeowner is not acting in good faith, it could mean that the foreclosure is allowed to continue. If a lender does not act in good faith, it could be required to pay a penalty.

More questions? Contact us for a free consultation.

If you have additional questions or would like more information about how the foreclosure mediation program could affect your or benefit you, please feel free to contact us for a free initial consultation. We’ll talk on the phone or sit down with you, get an understanding of your situation and figure out the best options available for you.

For more information on the Nevada Supreme Court’s official website, you can read their Frequently Asked Question (FAQ) section at

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Call today to schedule your free consultation!

We are here to help

Call today to schedule your free consultation!