Call to Extend Repo Homes Mediation in Nevada

State worker Sindy Scarce has called on the Nevada Supreme Court to extend repo homes mediation for those homeowners who are on the brink of losing their properties to foreclosures.

Testifying before the court, she said that she is in danger of losing her house located in Carson City within 90 days because of the furloughs required by the Nevada Legislature. She told the court that she wants to modify her loan to avoid the notice of default.

The Nevada Supreme Court is in the process of writing the repo homes mediation rules which would allow distressed homeowners to request for intervention that requires participation of lenders once the notice of foreclosure had been issued. The court is expected to finalize the rules by next week with the mediation to start on August 1.

Author of the law and Clark County Legal Services executive director, Assembly Speaker Barbara Buckley expects that mediation cases will flood the court because Nevada tops the country in terms of foreclosure rate.

According to Chief Justice Jim Hardesty, the Supreme Court will try to reach out to lending institutions to determine if they are willing to go into voluntary repo homes mediation to help distressed homeowners save their properties from foreclosures.

However, he pointed out that the law requires that mediation could only be adopted on foreclosure cases filed not later than July 1. The law does not cover foreclosures that are pending, Hardesty added.

Meanwhile, Buckley said that lending institutions must be required to send their representatives to the mediation process. But these representatives should have the authority to make decisions on behalf of lending institutions.

She pointed out that many troubled homeowners are complaining that they could not reach someone in banks or lending institutions who has the authority to provide answers on their problems. She added that if lenders send in individuals to mediations who have only limited authority, the process could be derailed.

Assistant professor at the University of Las Vegas‘ Boyd School Ray Patterson said that a mediator need not be a lawyer. But already, over 400 lawyers and skilled mediators have applied to join the repo homes mediation program. And an administrator is set to be hired by the court for the mediation program.

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