GREEN WASHING A FORECLOSED LAWN 
An article in the investment paper, Investors Business Daily states that the first four mediations showed mixed results: “In two cases, the loans were modified so that the borrower could stay in the home. One included a $40,000 principal reduction. In the third case, the homeowner and lender agreed to a “deed in lieu of foreclosure.” With this, a borrower signs over the home to the lender before foreclosure, avoiding some damage to his or her credit standing. The fourth case hasn’t been resolved, but the mediator is very pleased with the three other cases and particularly encouraged by the loan modifications.” Notice that only one (smart) homeowner got a principal reduction. There is a reason for that, and its called leverage.
To achieve better mediation results, the homeowner needs leverage against the lender. Otherwise the homeowner is at the mercy of the lender trying to convince it to please modify the loan “because its the right thing to do”. The “leverage” the homeowner needs to get favorable results at the mediation is a viable threat of filing a law suit against the lender for predatory lending practices.
The filing of a lawsuit will automatically increase the lender’s financial risks and costs, and further delay the foreclosure sale. Las Vegas law firms which have numerous existing homeowner predatory lending lawsuits against the lenders can make that threat a reality, and are therefore, in a very strong bargaining position at the mediation.
