LAS VEGAS (KSNV & MyNews3) -- A new law starting October 1 will help Nevadans stay in their homes.
Last week there was a 300 percent jump in Nevadans defaulting on their home loans and the state is back to having the highest foreclosure rate in the country.
Donald carrier has never missed a payment on his 5 thousand dollar a month mortgage but about 5 months ago money was stretched thin and he knew he had to do something before things took a turn for the worse
“This city was going through some devastation as far as homes go and i didn’t want that to happen to me that’s why i started to plan everything I could,” said homeowner Donald Carrier.
Fortunately, he was able to get his mortgage modified and his interest rates lowered
“It really helped out tremendously,” Carrier said.
But thousands of Nevadan’s aren’t as lucky with one in 359 homes seeing some sort of foreclosure filing last month.
For homeowners who are facing foreclosure changes to the states foreclosure mediation law effective October 1 could help turn things around.
Nevadans foreclosure mediation law allows homeowners and lenders to discuss alternatives to foreclosure with the help of a trained mediator.
The law originally required homeowners to elect mediation but according to Verise Campbell, the Deputy Director of the Foreclosure Mediation Program, the new changes automatically enroll those facing foreclosure.
“The fact that they’re automatically enrolled it’s one less step that the home owner has to do sometimes it’s that first step if we can get people past taking that first step then normally they’re on a pathway to where they can deal with this,” Campbell said.
The law change also requires lenders to send two notices to homeowners after filing a notice of default. Both notices must include information about the foreclosure mediation program although homeowners still have the right to waive mediation.
Campbell says the program is essential to keeping Nevadans in their homes.
“I think we’re starting to turn a tide where we can get these parties together and they can come out with some type of resolution,” Campbell said.
-- Venise Toussaint, KSNV News 3