Changes to the Las Vegas Mortgage Modification Mediation Program
The United States Bankruptcy Court for the District of Nevada has just adopted uniform procedures for its Mortgage Modification Mediation Program pursuant to Administrative Order 2014-08. This program applies to Las Vegas Chapter 13 bankruptcy filings and all types of real property, commercial and residential.
This new program will take effect on January 1, 2015, and will allow chapter 13 debtors to use a bankruptcy mediation program to modify their mortgages. While the Bankruptcy Court will not force any modification on lenders, having a system with set guidelines and rules will be a boon to homeowners in chapter 13 bankruptcy.
Currently, varied procedures exist across all lenders for home loan modifications, and the process is confusing and far from streamlined. The State of Nevada had established a mediation program several years ago but it has a very limited access to homeowners due to the stringent time frames when homeowners are allowed to even apply for mediation. Often under that mediation program, the deadline to request mortgage mediation has expired by the time homeowners seek legal advice on how to proceed. The Bankruptcy Court’s new mortgage mediation program aims to correct some of the shortcomings in the current paths for mortgage modification and mediation. Homeowners should have greater access to modifications through this new program. This program also will establish uniform rules to make the process more transparent for both parties.
For homeowners who are facing difficulties paying their mortgage and are in need of modification assistance, this program may be the solution they are looking for. Please contact our office to for a free consultation to discuss your options.