Nevada Judiciary

With the passage of a new law providing for mediations in foreclosure cases to forestall the loss of home ownership, the Nevada Supreme Court has begun the difficult process of establishing formal rules and creating procedures for the legislatively-mandated program.

In anticipation of the passage of AB-149, the Supreme Court already had begun preparing for what is expected to be a flood of mediations. 

“Nevada is in an economic crisis because of foreclosures, but the worst part is that many Nevada families are losing their homes,” said Chief Justice James W. Hardesty.  “I believe that through this new law and our mediations, we are going to save some homes and help ease the burden for some lenders.”

He noted, however, that mediation will not be the solution for everyone and some homes inevitably will be lost to foreclosure.

“Mediations are not a formal court process,” Chief Justice Hardesty said.  “In a mediation, the homeowner and the lender sit down with a trained mediator to try to reach a mutually agreeable resolution.”

AB-149 only affects owner-occupied housing and currently will apply only to foreclosures filed after July 1, 2009.  The bill gives borrowers the right to seek mediation of a mortgage loan once a foreclosure has been filed.

The Chief Justice emphasized that the foreclosure mediation program is self funded through fees and will not require the expenditure of any taxpayer dollars.

“We knew that the bill likely would pass and we knew that the time frame would be short for creating a system to handle what may be an overwhelming number of cases,” Chief Justice Hardesty said.  “The Supreme Court proactively took steps to prepare for what is now a reality.”

A "working group" headed by Chief Justice James W. Hardesty has been meeting for more than eight weeks to make recommendations to the Supreme Court about the rules and various operational needs for the new mediation program.  A new system already has been established to address administrative matters for the mediation program.

Justice Mark Gibbons chairs a subcommittee preparing a draft of the new rules and Associate Chief Justice Ron Parraguirre chairs a subcommittee to recruit and train mediators for the program. 

Chief Justice Hardesty said more than 350 attorneys already have offered to be mediators, but they will require training.  Initially, senior judges and Supreme Court settlement judges will carry the workload.

An administrator, a coordinator, and a fiscal clerk will be hired in the next few weeks to staff the program. 

Chief Justice Hardesty said that finding facilities in which to conduct the mediations will be another task for the judiciary. 

AB-149 requires that the Supreme Court oversee and establish rules for the foreclosure mediation program.  Preliminary rules are being drafted and, as with all new rules, public hearings will be conducted by the Supreme Court prior to passage.

The first public hearing is scheduled for June 16 in Carson City.  The second will be held on June 26 in the Supreme Court’s Las Vegas courtroom at the Regional Justice Center.  It is anticipated that the Supreme Court would vote on the new rules by June 29, making them effective a month later.

The Supreme Court rules are expected to ensure that mediations occur in a timely manner, that mediators have sufficient information from the parties, and that the mediation process is not abused.

In addition to rules, the Supreme Court is creating forms that will make it easier for the parties to access and navigate through the mediation process. 

“Essential information will be readily available on the Supreme Court website, including the forms and instructions to help Nevada families enter into mediation to save their homes,” Chief Justice Hardesty said.

More on Nevada's Foreclosure Mediation can be found HERE. More information will be coming soon.