25 Jun Nevada Legislative Update
The Nevada legislature recently amended its laws regarding the Foreclosure Mediation Program, effective June 10, 2015.
NEVADA SENATE BILL 512
A borrower under a mortgage secured by owner-occupied housing or a grantor or the person who holds the title of record with respect to any trust agreement which concerns owner occupied housing may initiate mediation to negotiate a loan modification under the mediation process provided by law if, on or before December 31, 2016:
- A local housing counseling agency approved by the United States Department of Housing and Urban Development certifies that the borrower, grantor or person who holds the title of record:
- Has a documented financial hardship; and
- Is in imminent risk of default; and
- The borrower, grantor or person who holds the title of record:
- Submits a form prescribed by the Mediation Administrator indicating an election to enter into mediation; and
- Pays to the Mediation Administrator his or her share of the established fee.
Upon satisfaction of the above requirements, the Mediation Administrator must notify the mortgage servicer, by certified mail, return receipt requested, of the enrollment of the borrower, grantor or person who holds the title of record to participate in mediation and must assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. The mortgage servicer must notify the lender or the beneficiary of the deed of trust, as applicable, and every other person with an interest, by certified mail, return receipt requested, of the enrollment of the borrower, grantor or person who holds the title of record to participate in mediation.
Each required mediation must be conducted in conformity with the statutory requirements.
If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator must prepare and submit to the Mediation Administrator a recommendation that the matter be terminated. The Mediation Administrator must, not later than 30 days after submittal of the mediator’s recommendation that the matter be terminated, provide to the mortgage servicer a certificate which provides that the required mediation has been completed in the matter. If the Mediation Administrator provides such a certificate, the requirement for mediation is satisfied.
The certificate may be recorded in the office of the county recorder in which the trust property, or some part thereof, is situated. The recording of the certificate in the office of the county recorder in which the trust property, or some part thereof, is situated will satisfy any recording requirements.
A noncommercial lender must also meet the above requirements.
The Mediation Administrator and each mediator who acts in good faith and without gross negligence are immune from civil liability for those acts.
“Financial hardship” means a documented event that would prevent the long-term payment of any debt relating to a mortgage or deed of trust secured by owner-occupied housing, including, without limitation:
- The death of the borrower or co-borrower;
- Serious illness;
- Divorce or separation; or
- Job loss or a reduction in pay.
“Imminent risk of default” means the inability of a borrower or the person who holds the title of record to make his or her mortgage payment within the next 90 days.
“Mediation Administrator” means the person designated by the Supreme Court to perform certain actions as required by law.
“Noncommercial lender” means a lender which makes a loan secured by a deed of trust on owner-occupied housing and which is not a bank, financial institution, savings and loan association, thrift company, credit union or is not regulated under the Uniform Debt-Management Services Act.
“Owner-occupied housing” means housing that is occupied by an owner as the owner’s primary residence. The term does not include vacant land or any time shares.
The above provisions expire on June 30, 2017.
Except as otherwise provided, the trustee must meet certain obligations before exercising the power of sale with respect to any trust agreement which concerns owner-occupied housing and for which a notice of default and election to sell is mailed on or before December 1, 2016 to the borrower or the person who holds the title of record.
In a civil action for a foreclosure sale affecting owner-occupied housing that is commenced in a court of competent jurisdiction on or before December 1, 2016, the complaint served on the borrower must include a separate document containing specific contact information, information regarding mediation, and a form upon which the borrower may elect or waive mediation.