To mediate or not to mediate...What is a foreclosure mediation? How does it help in foreclosure prevention?

What is Foreclosure Mediation?
During the 2009 session Nevada Legislature passed and Governor Jim Gibbons signed the Assembly Bill 149 the purpose of which was to address the foreclosure prevention in state of Nevada and to help Nevadans with foreclosure prevention and to keep Nevada families in their homes. This law established a Nevada Foreclosure Mediation Program for owner-occupied properties that are subject to foreclosure notices – formally known as a Notice of Default and Election to Sell – filed on or after July 1, 2009.

Nevada Foreclosure Mediation is an alternative method to stop foreclosure sale by helping borrowers and lenders come together to resolve disputes by agreement with the help of trained mediators. Mediating has its advantages. It is fast, inexpensive, and offers more flexibility than more formal processes do not.

Why should you opt-in to mediate?
With a help of a trained mediator you and the lender are the principles in deciding the outcome of your individual situation. Foreclosure mediation is a process of give and take where both parties work to reach a mutually acceptable settlement to the problem. Resolutions reached via Nevada foreclosure mediation programs are alternatives that offer advantages to lenders as well as homeowners.

Sometimes the parties will not be able to reach an agreement and the home will be lost to foreclosure - a reality in today's economy. However, if the foreclosure mediation is successful, the homeowner can avoid foreclosure; receive a loan modification or an approval for a short sale.

Mediation is quicker and more efficient
Proposed Supreme Court rules Foreclosure Mediation is limited to four hours and requires that it is conducted within 135 days of a foreclosure notice being filed. All parties must be present to mediate. The cost of mediation is $400, split 50/50 by the homeowner and the lender. Each party must pay their portion prior to the mediation.

In conclusion
Within 10 days of the foreclosure mediation, the necessary Statement of Agreement or Non-agreement will be prepared. The original will be filed with the Foreclosure Mediation Program Administrator and the case will be closed. If there is an agreement, the parties will execute the appropriate documents. If there is no agreement, the parties will be free to pursue other legal remedies.



The intent of this post is to inform delinquent homeowners on one of the options of how to resolve their foreclosure issues and to stop home foreclosure. All efforts have been made to provide factual, up to date and accurate information, as of the time the blog was written. The information contained in this post is in no uncertain terms to be considered legal counsel. Always seek advice from an attorney, certified public accountant or other professional regarding the credit, legal and/or tax consequences of any actions taken with regards to foreclosure.