Rule 6 of the June 30, 2009 Nevada Supreme Court’s Adoption of Foreclosure Mediation Rules allows for voluntary mediation for homeowners who are not eligible under the Mandatory Mediation Program. In that case, since the Notice of Default was filed prior to July 1, 2009, the mediation becomes optional or voluntary at the lenders option.
Rule 6. Option for Inclusion. “For any owner-occupied property located in Nevada where a Notice of Default is recorded prior to July 1, 2009, the grantor or person who holds the title of record (eligible participant) and the beneficiary of the deed of trust may agree in writing to enter the Foreclosure Mediation Program governed by NRS 107 and these rules. Notice and a copy of the agreement must be provided to the Administrator. Subject to the approval of the Administrator, the mediation process shall be conducted with the appointment of a mediator within 10 days of the Administrator’s acceptance of the parties agreement to mediate.”
Rule 6, essentially, acts as a voluntary retroactive provision. The issues are whether or not the lenders are willing to participate in this voluntary mediation and whether or not the Nevada Foreclosure Administrator would approve. Although elections under Rule 6 have already been made, we are not aware of any lender acceptances or approvals by the Administrator as of the date of this article. We anticipate, however that eventually, lenders will accept, and the Administrator will approve. When mediation is voluntary, all sides must agree to mediate, and have an equal part in resolving the dispute. The Mediation will be confidential which means evidence created during mediation cannot be used in a subsequent civil trial.
The benefits received from voluntary mediation, are the same benefits received from Mandatory Mediation- a speedy, cost effective, effecient, and fair method to resolve the Nevada foreclosure crises. We will wait and see how Rule 6 plays out.
