I had a very interesting conversation with a local Nevadan this morning that led me to have to post this page. This caller gave me some extremely useful information that I wish to pass on to my readers. This information is useful for anyone that believes a foreclosure is imminent or anyone that has already been served a notice of foreclosure from their lender/servicer.
Many people have come to me over the last 2 years asking for help with their upside down mortgage. Most were just people that wanted to refinance to get out of their adjustable rate mortgage and or interest only mortgage but could not because they owed more than what their house was worth. As time progressed, the entire economy began to suffer as did our local jobs market. To many, that refinance meant being able to stay in their home - it wasn't just the liesure of getting a better rate. Some I've been able to help through the process of a short refinance. However, with the massive amount of foreclosures facing homeowners in Nevada, there really needs to be a local grass roots effort at the state level.
I have had the luck of speaking to someone this morning that had first hand knowledge of a local governmental body that is working on behalfs of homeowners that are faced with foreclosure. The passage of Assembly Bill 149 makes this possible for homeowners facing foreclosure crisis. "The purpose of AB 149 is to directly address the foreclosure crisis and to help keep families in their homes. AB 149 also provides an opportunity for homeowners and lenders to discuss alternatives to foreclosure."
The state of Nevada Foreclosure Mediation Program (FMP) offers a website which I recommend as your first step to find out how this process works and if it's for you. The Nevada State Supreme Court & their mediatiors oversees the process. It is an alternative remedy if you've thought of consulting with an attorney. The cost for using the state's foreclosure mediation is also much less costly than an attorney would be - about 10 times less. This might be a last resort for most people that have tried and tried for months and months to work with their lender and keep getting the run around with no resolution.
If you want assistance, they require that you complete and return the Homeowner Packet along with a $200 non-refundable fee to the state of Nevada. The $200 fee is small in comparison with most modification, consultant companies and attorneys.
You can also contact their foreclosure mediation hotline at
775-687-9816 (Northern Nevada)
702-486-9380 (Southern Nevada)
888-421-3004 (Only available from outside of the 702 area code)
I believe once you have a mediator assigned and a file in progress with the state, then the lender/servicer must halt foreclosure proceedings. This is a point you will want to veify with the FMP.
I wish everyone the best of luck in the home ownership endeavors.