Nevada Looks At A Possible Answer To Foreclosures

Nevada has the highest rate for foreclosures in the country and as a result the state government is looking at possible solutions to the problem. The State Senate believes that their program would receive support from both legislatures and borrowers.

It is believed that this program will assist to reduce the rate of foreclosures for the state.

This program would make it necessary for a lender to participate in negotiations toward mortgage modifications if the borrower would request a modification. This program goes further to state that negotiations would be mediated by a member of the judicial board.

The lender also would have to provide a default notice, contact information for a person authorized to negotiate loan modifications, information about a local housing counseling agency, and a form explaining that borrowers can request court-mandated loan modification.

While it is realized that this would be a huge undertaking for the courts it would assure that distressed homeowners had an opportunity to negotiate mortgage modifications in a bipartisan environment that would not be controlled by the lender.

The traditional way to negotiate a mortgage modification has been for a borrower to contact the lender and apply for a modification and the lender would have the final authority over the terms of the modification and in many case the modifications that have been created have been insufficient for the borrower to correct their situation.

Not only would the homeowner have an opportunity to apply for mortgage modifications they would also have the opportunity to hire a legal negotiator such as an attorney or a mortgage specialist to represent them in the mediation process.

There were 77,693 properties in foreclosure in Nevada in 2008, more than double the number in 2007 and a fivefold increase over 2006. There is an anticipated 72,157 Nevada properties will face foreclosure in 2009. It is believed that this proposed program will help prevent many of these foreclosures.

If you are a homeowner who may be facing foreclosure there are some things you should consider.