Does the “good faith” requirement for mortgage lenders under the new Nevada Foreclosure Mediation Program have teeth?
If you’ve been following this blog, then you know that under Nevada Foreclosure Mediation Program put into place this year, a Nevada homeowner who received a foreclosure notice on July 1, 2009 or later can apply within 30 days for a foreclosure mediation session. This means that an authorized representative from the mortgage lender must attend the session.
According to the rules, the mortgage lender’s representative must act in good faith. That is, they can’t just show up and go through the motions. The consequences for not acting in good faith are “sanctions” which can mean a delay of the foreclosure, or perhaps something stronger.
What those sanctions will be and whether they’ll have enough teeth, however, is not clear yet.
Thanks to a frustrated homeowner named Raul Cardenas, however, we may soon find out. He went through a foreclosure mediation session with his mortgage lender–Chase Bank–recently. After getting the sense they were not acting in good faith, he sued Chase. The court set November 13 as a hearing date to determine sanctions, though the judge also encouraged both sides to get together for another mediation session.
While we do not yet know what the sanctions will be, it is encouraging to see that the courts are placing value on the “good faith” requirement and allowing a hearing on the sanctions to proceed. That alone may provide the leverage Mr. Cardenas needs to be able to keep his home.
Help Stop Foreclosure Las Vegas
If you’re a Las Vegas homeowner facing foreclosure and you’re seeking good bankruptcy attorneys in Las Vegas who are experienced with foreclosure, loan modifications and new bankruptcy laws Las Vegas, then contact us for a free foreclosure consultation.
We’ll help you figure out all of your options and get the full benefit of the bankruptcy process that was created to protect citizens like you. For more information see our page on Las Vegas foreclosure mediation or call Haines and Krieger today for a free consultation at 702-903-1385.