Mediation Program may return
A foreclosure mediation bill has been drafted in Nevada. The bill would revive the program. Here is a summary of the bill, as provided by Ramir M. Hernandez, Esq. of Brooks Hubley, LLP, UTA’s Nevada Representative:
1) The program would be administered by the Housing Division rather than the Supreme Court;
2) The Division would send a notice to the borrower as the current program does now; however, the notice is not to elect into the medication program but for the borrower to petition the district court that he or she wishes to participate in mediation;
3) If the borrower elects to petition the district court, the District Court would then assign a mediator;
4) The bill appears to make the program an opt-in program once again rather than an opt-out program;
5) The fee for filing a mediation petition would be $25 and goes to the Division;
6) The mediation fees are raised from $400 to $600; are still split between the parties, and go directly to the district court;
7) The current mediation program fund is transferred to the Housing Division and is redesignated as “mediation assistance”;
8) In addition to the current documents the beneficiary is required to bring to the mediation (i.e. original note and deed of trust, assignments), beneficiaries would now have to bring any documents created in connection with a loan modification;
9) Mediation statements would be sent to the district court directly rather than the Division;
a.) If the parties mediate in good faith and no agreement is reached, the mediator would recommend that the district court dismiss the petition; however, the Division will not issue a certificate until after the court enters its order;
b.) If the beneficiary fails to mediate in good faith, the mediator would recommend that the district court issue sanctions;
c.) If a borrower fails to attend the mediation, the district court would dismiss the petition—the Division would issue a certificate 30 days after the mediation regardless of whether the court takes action;
d.) The Mediator would submit to the District Court the terms of any loan modification or settlement agreement—the Court then would then be required to enter an order describing the terms of any such modification or agreement.