Nevada Legislative Update

Nevada Legislative Update

The Nevada legislature recently amended its laws governing foreclosures, effective October 1, 2013.

NEVADA ASSEMBLY BILL 273

 

 

The provisions of this memorandum apply only to trust agreements for which a notice of default and election to sell is recorded on or after October 1, 2013.

 

 

To exercise a power of sale, the trustee must serve upon the borrower or the person who holds the title of record a notice in substantially the following form:

 

 

NOTICE

YOU ARE IN DANGER OF LOSING YOUR HOME!

 

 

Your home loan is being foreclosed.  In not less than 60 days your home may be sold and you may be forced to move.  For help, call:

 

Consumer Credit Counseling _______________

The Attorney General _____________________

The Division of Mortgage Lending ___________

The Division of Financial Institutions ________________

Legal Services ______________________

Your Lender ___________________

Nevada Fair Housing Center ________________

 

 

The following has been deleted from the notice:

 

 

YOU MAY HAVE A RIGHT TO PARTICIPATE IN THE STATE OF NEVADA FORECLOSURE MEDIATION PROGRAM IF THE TIME TO REQUEST MEDIATION HAS NOT EXPIRED!

 

 

The trustee must not exercise a power of sale unless the trustee:

  • Includes with the notice of default and election to sell:
    • Contact information which the borrower or the person who holds the title of record may use to reach a person with authority to negotiate a loan modification on behalf of the lender;
    • Contact information for at least one local housing counseling agency approved by the U.S. Department of Housing and Urban Development;
    • A notice provided by the Mediation Administrator (the “Administrator”) indicating that the borrower or the person who holds the title of record will be enrolled to participate in mediation if he or she pays to the Administrator his or her share of the fee; and
    • A form upon which the borrower or the person who holds the title of record may indicate an election to waive mediation, one envelope addressed to the trustee, and one envelope addressed to the Administrator; and
  • Provides to the borrower or the person who holds the title of record the information required above concurrently with, but separately from, the notice of default and election to sell.

 

If the borrower or the person who holds the title of record elects to waive mediation, he or she must, not later than 30 days after service of the notice, complete the form above and return the form to the trustee and the Administrator by certified mail, return receipt requested.  If the borrower or the person who holds the title of record does not elect to waive mediation, he or she must, not later than 30 days after the service of the notice, pay to the Administrator his or her share of the fee.

 

 

Upon receipt of the share of the fee owed by the borrower or the person who holds title of record, the Administrator must notify the trustee, by certified mail, return receipt requested, of the enrollment of the borrower 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 trustee must notify the lender and every other person with an interest in the property by certified mail, return receipt requested, of the enrollment of the borrower or the person who holds the title of record to participate in mediation.

 

 

If the borrower or person who holds the title of record is enrolled to participate in mediation, no further action may be taken to exercise the power of sale until the completion of the mediation.

 

 

If the borrower or the person who holds the title of record indicates an election to waive mediation or fails to pay to the Administrator his or her share of the fee, the Administrator must, not later than 60 days after the Administrator receives the form indicating an election to waive mediation or 90 days after the service of the notice, whichever is earlier, provide to the trustee a certificate which provides that no mediation is required in the matter.  The trustee no longer is required to execute an affidavit or provide a waiver of mediation or proof of service.

 

 

If the borrower or the person who holds the title of record is enrolled to participate in mediation but fails to attend the mediation, the Administrator must, not later than 30 days after the scheduled mediation, provide to the trustee a certificate which states that no mediation is required in the matter.

 

 

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 Administrator a recommendation that the matter be terminated.  The Administrator must, not later than 30 days after submittal of the mediator’s recommendation that the matter be terminated, provide to the trustee a certificate which provides that the mediation has been completed in the matter.

 

 

Upon receipt of the certificate provided to the trustee by the Administrator, if the property is located within a common-interest community, the trustee must notify the unit-owner’s association of the existence of the certificate.

 

 

During the pendency of any mediation, a unit’s owner must continue to pay any obligation, other than any past due obligation.

 

 

In a condominium, a planned community, or a cooperative, the association may not foreclose a lien by sale if:

  • The unit is owner-occupied housing encumbered by a deed of trust;
  • The lender, the successor in interest of the lender, or the trustee has recorded a notice of default and election to sell with respect to the unit; and
  • The trustee of record has not recorded the certificate provided to the trustee by the Administrator providing that mediation is required or has been completed.