So far, Nevada’s Foreclosure Mediation Program appears to be the only one with teeth in it.
Recently, the non-profit National Consumer Law Center released a report saying that none of the foreclosure mediation programs they reviewed (a list which does not include Nevada) are providing significant benefits to homeowners. (See Reuters article on the report – “US home foreclosure mediation in jeopardy: report.)
Why? Because the existing programs routinely fail to impose significant obligations on mortgage servicers, according to the article.
In contrast, Nevada’s Foreclosure Mediation Program gives homeowners facing foreclosure the option to request a mandatory foreclosure mediation session. This means someone from the mortgage company with authority to negotiate must attend the foreclosure mediation session. Additionally, Nevada has now trained a number of professional foreclosure mediators who also sit in on and participate in the foreclosure mediation session.
It would be great if the other states could create laws with similar teeth in them. And it would be even better if Congress or the Treasury could come up with uniform protections and solutions for homeowners. However, the mortgage industry’s lobby is strong. And according to the NCLC report:
“It is unfortunate that the [mortgage] industry has so far prevailed in blocking Congressional action on court-ordered loan modifications, the one step that would level the playing field for consumers and ensure the necessary accountability from all parties….With the industry’s encouragement, crucial elements of accountability have been omitted from the Treasury Department’s Home Affordable Modification Program (HAMP). Now, over six months after its inception, this new federal initiative serves only a small percentage of eligible homeowners.”
The important takeaway, for now, is that Nevada homeowners have some unique tools at their disposal.
We’ve been following this issue very closely and making sure our clients get the full benefit of the bankruptcy and foreclosure laws available. If you’re a Las Vegas homeowner who is facing foreclosure and seeking a bankruptcy attorney in Las Vegas, then contact us for a free foreclosure consultation.
Having an experienced and trustworthy Las Vegas bankruptcy attorney is the most important first step in moving forward.