Several years ago, Nevada was a state where home prices skyrocketed. Today, Nevada suffers from one of the highest foreclosure rates of any state in the country. RealtyTrac.com claims that one out of every eighty-four households in the state of Nevada has received a foreclosure notice. This is 4.5 times more than the national average.
To deal with the high foreclosure rate, Nevada has implemented a foreclosure mediation program. The purpose of the program is to get troubled borrowers and lenders to negotiate amicable resolutions concerning foreclosure issues. The program has been in effect since July of 2009. As of this date, almost 9,000 mediation requests have been received. Nevada is currently the only state that requires banks to enter into a mediation program.
Since the mediation process started, in excess of sixty-percent of all foreclosure cases have been resolved through mediation. Not all of the resolutions resulted in the homeowner keeping their home. In some cases, as a result of the mediation, the homeowner realized they have no possibility of affording their home and agreed to vacate the premises; however, a large majority of the cases were resolved with the financial institution and the homeowner working out a mortgage modification plan.
The law in New York does not require mediation for foreclosure lawsuits; however, New York Governor David Patterson signed into law a statute that requires mortgage companies, banks and other financial institutions to participate in settlement conferences.
The settlement conferences are required whether or not there are mortgage modifications that are pending. In most situations where there are mortgage modifications pending, the lawsuit is put in abeyance until such time as there has been a decision made with regard to the mortgage modification. In many respects, the settlement conferences have a mediation-type of impact due to the fact that the judge will explore alternatives to the case moving forward.
Our law office has been representing individuals with financial problems who face foreclosure and other types of lawsuits for more than thirty years. Should you have financial problems or find your house in foreclosure, feel free to call us. There are alternatives to foreclosure and we can assist you with regard to these alternatives. Contact our office as 1-800-344-6431, or by email.