The Anatomy of a Foreclosure Mediation

The mediation will begin with a Foreclosure Notice also known as a Notice of Default and Election to Sell (NOD). The Trustee usually mails this letter, certified return receipt requested, to the homeowner advising her the house is in foreclosure. The NOD is also recorded at the County Recorder’s Office. The NOD contains a mediation form letter and two envelopes. The Trustee is usually a company that specializes in foreclosures and is retained by the beneficiary (usually a bank) to handle the foreclosure. The Trustee works for the bank.

SEND NOTICE
Upon receipt of the NOD, the homeowner imediately retains an attorney (attorney is optional and the homeowner can do all this on their own). Within 30 days of serving the NOD, the attorney, on behalf of the homeowner, must fill out the form letter, check the box electing mediation, and mail it, certified return receipt requested, to the Trustee with a money order or cashier’s check payable to “the State of Nevada Foreclosure Mediation Program” in the amount of $200, and also mail a copy of the form letter, certified return receipt requested, to the Foreclosure Administrator.

ARRANGE FOR A MEDIATOR
Withing 10 days of receipt of the Election to Mediate Form, the Trustee will send a letter, the homeowner’s cashier’s check for $200, and another cashier’s check from the Trustee for $200 to the Foreclosure Mediation Administrator. Withing 10 days of receipt of the mediation form letter, the Foreclosure Mediation Administrator will appoint a mediator and advise the mediator of the election to mediate.

SCHEDULE AND ATTEND A MEDIATION
The mediator will than schedule a mediation to be completed within 90 days of service of the NOD. The bank and homeowner’s attorney exchange documents in preparation for the mediation. They should also begin settlement negotiations. The homeowner and her attorney, a representative of the bank, such as a manager or bank attorney, and the mediator will attend the mediation which will probably last no more than 4 hours. The case will settle with an Agreement or it will not.

COMPLETE THE MEDIATION PROGRAM
Within 10 days of the mediation, the mediator will prepare the necessary Statement of Agreement or Non-agreement and serve it on the parties. The original will be filed with the Foreclosure Mediation Program Administrator and the mediation will be closed. If there is an agreement, the parties will execute the appropriate documents. If there is no agreement, the parties will be free to pursue other legal remedies.