The Nevada Mediation Program

The following is brief snapshot of the program:

Made effective In October of 2009, the Nevada Mediation Program gives homeowners facing foreclosure the option to mediate an alternative to foreclosure. Since the program came into existence, it has successfully helped many homeowners find a solution with their lenders, who otherwise would have suffered a foreclosure. The program has seen an increase in applications, however there are still many borrowers who fail to see the value of the program, and therefore do not elect to mediate.  Although there is no guarantee the program will provide borrowers with the help they need, I do believe many of these homeowners would see the value of participating in mediation if they had a better understanding of the program.

Mediation Timeline

Borrower is in default and a Notice of Default & Election (NOD) to sell form is recorded by their lender with the County Recorder. Along with a copy of the NOD, an Election/Waiver of Mediation is sent to the borrower If the home is owner occupied as a primary residence (otherwise mediation is not available), the borrower has up to 30 days to elect meditation by completing the Election/waiver form and returning it with all required documentation outlined in the instructions included with the form. There is also a $200 fee that must accompany the form.  If borrower elects mediation, the foreclosure process may not continue until the lender is issued a certificate of completion.

Once the borrower elects mediation, the Trustee must then also then notify the program of their participation, along with their own $200 fee. Program Administrator or designee assigns a mediator the file. Mediator schedules mediation date with both parties involved. Lender & Homeowner exchange required documents within the time-frame listed in Rule 8 of mediation. Mediation is conducted, and mediator issues a mediators statement to the program administrator. Trustee may then request their certificate of completion. Program Administrator will either issue or deny a certificate to the trustee. If either party is not satisfied with the outcome, they may file a petition for Judicial Review with the District Court.

Mediation and its Role

Mediation is a method to help parties resolve their disputes with the Help of a trained mediator. 

The mediator involved is an independent and neutral third party who’s function is to guide the discussion in a manor that will result in a desirable outcome for both parties (i.e.: a modification). The mediator is also present to ensure that all parties provide certain required documentation to the other parties involved, and that all parties follow the rules of the mediation program. (The rules of the foreclosure mediation program were set by the Nevada Supreme Court, and have been amended several times since the program began.  For a copy of the most current rules of mediation, please visit: 

At the conclusion of the mediation, the mediator will prepare a statement that will include any agreement made between the parties. This statement will also indicate whether or not either party provided all their necessary documents, followed the rules, and whether or not either party were acting in good faith. The mediator’s statement will play a vital role in the administrator’s decision to either issue or decline to issue a certificate of completion to the lender. If a certificate is not issued, foreclosure may not continue.

Reasons to elect mediation:

–          If borrower elects mediation, the lender or their representatives must attend and participate in good faith.

–          Until mediation occurs, the foreclosure process is postponed and may even be canceled.

–          In many cases, a resolution may occur that would have been impossible or very difficult through the lender’s normal assistance program. 

–          If a modification still isn’t a possibility, other terms may be negotiated to allow a graceful exit from the property.  These other terms may include a short sale, Deed in Lieu of Foreclosure, or even just additional time to allow the borrower to move.

–          Possibility of having the outcome determined through a judicial review, if you disagree with the outcome of mediation.