Earlier this year, Nevada enacted a new statute (AB 149), effective on July 1, which gives the borrower of owner-occupied property the right to request mediation through which he or she may receive a loan modification. Once such a request is made, the lender may not proceed with a foreclosure sale. This statute requires lenders to jump through a number of hoops, within a prescribed time frame, many of which are difficult to satisfy. Among other things, the lender’s representative must bring to the mediation the original loan documents, including the note, deed of trust, and any assignment. The lender must also produce an appraisal of the real estate completed within 60 days prior to the mediation. If any party fails to participate in the mediation in good faith or does not bring to the mediation each document required by the act, the mediator may recommend sanctions. The court may then order sanctions, which could include a forced loan modification.
Topics
- The new statute and the Nevada Supreme Court rules implementing it
- What do they require of lenders and borrowers?
- Is it even possible to comply with all of the requirements?
- What are the ramifications if a lender fails to comply with all of the requirements?
- What is the track record of mediations conducted to date?
- How have courts dealt with litigation brought by borrowers alleging failures to comply?
- What strategies should be employed by lenders?
- Is the statute vulnerable to a constitutional challenge?
Dial-in information will be e-mailed to registrants before the teleconference.
Speakers
Alan S. Kaplinsky, Consumer Financial Services Group Chair
Martin C. Bryce, Jr., Partner
Ariel E. Stern, Partner