Facing foreclosure can be one of the most frightening possible experiences for a homeowner. A home where they have invested tens of thousands of dollars and years of their life could be vulnerable after they miss multiple mortgage payments.
The home serves as the collateral property for the loan used to purchase the house. When people default on their loans, their lenders can lay claim to the property to recoup what they paid for its purchase. Homeowners facing foreclosure often need to defend themselves and their interest in their property assertively.
One of the options available to homeowners is foreclosure mediation. What do people need to know about foreclosure mediation?
Owner-occupants are eligible for mediation
Technically, Nevada only requires that mortgage lenders allow foreclosure mediation in specific circumstances. Typically, the owner who has fallen behind on payments must also reside at the property. Property owners who have missed mortgage payments can request foreclosure mediation when they face either judicial or non-judicial foreclosure attempts.
What does mediation involve?
Foreclosure mediation involves in-depth financial conversations. The process begins with a conference call before the scheduled mediation session. The lender typically requests various financial documents from the property owner at that conference call. By providing those documents, the homeowner strengthens their ability to negotiate based on their current financial circumstances.
The actual mediation process involves the lender, the borrower and a neutral third-party mediator working together to find a solution other than foreclosure. Sometimes, buyers might propose extending the repayment period and thereby reducing their monthly payments. They might also try to move any missed payments to the end of the schedule. Otherwise, the homeowner might have to make multiple mortgage payments at once to bring the mortgage back into good standing.
The circumstances leading to the potential foreclosure and the terms of the mortgage influence what types of solutions the homeowner might propose and what sorts of concessions they might seek from their lender. Homeowners attempting foreclosure mediation often require the support of a legal professional.
An attorney can handle the direct negotiations and advocate for their clients. They can review the contract and educate the client about their rights under the law. With the right approach, foreclosure mediation can result in compromises that protect the lender’s financial interests while preserving the homeowner’s interest in the property.
Having support when dealing with real estate conflicts and controversy can help people protect their most valuable assets. Foreclosure mediation is one of several tools that can help Nevada property owners avoid the loss of their real estate holdings.
