I-Team: Is Foreclosure Mediation Working?
8 News Now
July 29, 2011
Mediation programs, like the one in Nevada, are designed to bring the bank and homeowners who have defaulted on their loans together in the same room with a mediator. “The plan is supposed to be simple. First, you get a default notice on your house. Next, the state requires three people to get into a room. And then, the homeowner, bank and mediator sort it all out.” Simple right?
This program could be the life-line that so many people need in these times of economic despair. In Nevada, the mediators can side with the homeowner if the banks don’t show up, show up without authority to modify or negotiate, or fail to provide all documents. Creator of the state law is proud that the state can “drop the hammer on non-compliant banks.” Despite the broad policy in favor of homeowners, statistics have not yet been compiled to determine the foreclosure mediation program’s success.