The Nevada Foreclosure Mediation Program has been updated in a number of ways that favor the homeowner. It will affect both mediations and short sales.
In mediations, the documents that are exchanged between the Lender and Homeowner must now be better organized and discussed PRIOR to the actual mediation. The thought is that the mediation will have a better chance of a successful outcome, potentially resulting in a loan modification, short sale, deed in lieu, etc.
The short sale section of the program has also undergone a change will could help more of them succeed as it forces the Lender to give more of a commitment to the short sale. The Lender must now prepare an estimate of the short sale value of the home that it may be willing to consider as part of the negotiation. The Lender must also submit any conditions that must be met in order for them to approve a short sale. On top of that, the Lender must be able to negotiate the listing price, list date, marketing time for the home, specific period the lender has to determine whether they will accept an offer and the maximum length of time the escrow can last.
If the grantor (homeowner) fails to meet conditions within the period allowed by the conditions, the lender may submit a request to … issue a certificate to foreclose…” On the flip side, if the grantor (homeowner) believes that the lender failed to comply with the guidelines of the agreement for the sale, or that escrow did not close because lender’s action/inaction of trust, the homeowner may file a petition for judicial review pursuant to Rule 21.” That means if a short sale agreement is put into place at mediation and the Lender does not follow the terms, the homeowner can pull the lender into court and arrest a foreclosure and potentially force a short sale.
The entire new rules can be found on the Nevada Judiciary website.
Comments