Loan Mod Mediation
New Loan Modification Mediation Program
The mortgage crisis has affected every homeowner in our valley, regardless of the value of your home or income. Nevada’s legislative response to this issue is Assembly Bill 149, the Loan Modification Mediation Program.
This program is designed to help homeowners before their homes are foreclosed upon. As I discussed in my last article, one of the biggest difficulties dealing with the mortgage companies is getting to the right person. You will call, be transferred, get disconnected, sent to the wrong person, be given false advice, and or they continually ask you for the same information. This process continues around and around until many home owners give up. In the mediation program the Nevada legislator is requiring the mortgage company to sit down at a table with a mediator and attempt to work out the terms of a modification. The hope is that the program will eliminate the run around and get the modifications done.
Nevada is the first state to adopt this type of program. Many states are looking closely at this program and its success rate. But this program will not help everyone. Homeowners will still have to qualify. Only mortgages that have gone into default after July 1, 2009 are eligible. And it will cost homeowners $200.00 to enter into the program.
The program also requires the mortgage companies to produce the original loan documents. They have to produce those documents to prove that they have the right to foreclose on the property. They also require that a person with the authority to modify the loan be present at the mediation. Lastly, and perhaps most importantly, they require the loan company to come to the table in good faith. This forces them to make a real effort to resolve the issue. Failure to comply with any of these requirements will result in a hold in the home foreclosure. Many mortgage companies want to be able to foreclose, so the hope is that they will abide by these requirements and really work to modify the loans.
Since the creation of the program they have had several thousand homeowners opt into the mediation. The first few scheduled mediations were resolved before the mediation took place. While this program is very new and no one can anticipate exactly what will happen, hopes are high that it will resolve some of the issues that desperate Las Vegans have been facing.
While the program does not require you to have legal representation at the mediation. An attorney can help the homeowners prepare the required documentation, review the loan paperwork and negotiate for the best loan modification.
Please contact our office at 448-4962 for more information on this program. Hiring someone to represent you is an important decision, having more information will help you decide what is best for you. This article is for informational purposes only and does not constitute legal advice or representation.