Reno Real Estate Logic

Yesterday, I was fortunate to witness first hand the mediation process with a client of mine. The 2009 Nevada Foreclosure Mediation Program is the first in the nation which forces the banks to communicate with the home owners about how they can retain possession via a loan modification  or other types of instruments that are also available such as a forbearance agreement, extension agreements, repayment plans, etc.

What most people do not know is that this program also allows the home owner another option which is to negotiate a return of the property to the bank. The variety of swaps include a Principal Forbearance agreement, Deed in Lieu of Foreclosure, Voluntary Surrender, Cash for Keys or my personal favorite, Short Sale.

The good news is that if you apply within 30 days of the Notice of Default, you are guaranteed a meeting with the bank or their representative to discuss these two levels of options. Beware however, that the banks are bringing attorneys to the table so you probably need to be prepared to have legal assistance if you want to come out of the mediation unscathed.

If you don’t have the money for private counsel keep your discussions brief, answer the questions simply and avoid discussing anything that you are not certain will advance your position. The attorney’s for the banks are on a hunting mission and are looking for details such as hidden assets.

There will be resolution for you at the mediation and if you decide to walk away since your home is so under water, it’s a choice that is perhaps the wisest one you can make.

Do give me a call so that I can school you on the process. Being knowledgeable is fair armed. Best of all, you can get an immediate approval to short sell your home, stay in the home until close of escrow and some banks will even give you a bonus if you deliver the property in good condition. It’s an equitable solution. Don’t be afraid to learn your rights.

It’s a wonderful to live in Nevada.    Happy Thanksgiving       -Michelle

 P.S. The client that I was with was unable to negotiate a significantly reduced mortgage payment with the lender. Although we encouraged the lender to allow a principal reduction which would have easily made the payment affordable and avoid the short sale, the lender did not agree. Thus we have listed the home.