Mediation Assistance

1. A grantor or person who holds title of record of an owner-occupied residence may participate in the Foreclosure Mediation Program: (a) Upon recommendation of a housing counselor or housing agency approved by the United States Department of Housing and Urban Development (HUD) pursuant to Rule 8(2); (b) Upon receiving a notice of default and election to sell pursuant to Rule 8(3); (c) Upon service of a complaint for judicial foreclosure pursuant to Rule 9; or (d) Upon mutual agreement of the parties pursuant to Rule 10. 2. Pre-foreclosure. (a) Prior to September 1, 2017, each beneficiary of a Nevada deed of trust and mortgage servicer shall submit to Home Means Nevada, Inc., or its successor organization, an address, phone number, and email address for receiving a copy of the Petition for Foreclosure Mediation Assistance pursuant to this section on a form provided by the District Court or via electronic transmission as authorized by the parties. (b) The grantor, or person who holds title of record, may file a Petition for Foreclosure Mediation Assistance when he or she is in imminent risk of default and has a documented financial hardship. In order to proceed under this paragraph, the grantor must: (1) File the petition with the District Court; (2) Pay the fees required under Rule 1(2); (3) Submit a certification by a housing counselor or housing agency approved by HUD (HUD Referral Form) that the grantor: (i) Has a documented financial hardship; and (ii) Is in imminent risk of default. (4) Serve a copy of the petition upon Home Means Nevada, Inc., or its successor organization, and the beneficiary of the deed of trust by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission. (c) As soon as Home Means Nevada, Inc., or its successor organization, receives all documents specified in Rule 8(3)(b), it will notify the mortgage servicer and every other person with an interest as defined in NRS 107.090 of the petition via certified mail at the address provided pursuant to Rule 8(3)(a). If the beneficiary has not registered with Home Means Nevada, Inc., or its successor organization, then Home Means Nevada, Inc., shall make the best effort to contact the mortgage servicer and persons with an interest using the contact information on the HUD Referral Form. (d) Within 10 days of notification by the Home Means Nevada, Inc., or its successor organization, of the petition, the mortgage servicer and any person with an interest shall prepare and submit an answer, the mediation fees required in Rule 1(2), and any other fees charged by the District Court. Any delay by the beneficiary in providing the required documents and information to the District Court shall extend the time for mediation set forth in Rule 1(2). (e) As used in this section: (1) “Financial hardship” means a documented event that would prevent the long-term payment of any debt relating to a mortgage or deed of trust secured by owner-occupied housing, including, without limitation: (i) The death of the borrower or co-borrower; (ii) Serious illness; (iii) Divorce or separation; (iv) Job transfer of more than 60 miles, while maintaining the same home as primary residence; (v) Job loss or a reduction in pay; or (vi) Any other event that would prevent long-term payment. (2) “Imminent risk of default” means the inability of a grantor or the person who holds the title of record to make his or her mortgage payment within the next 90 days. 3. Notice of default. (a) Any trustee or other person presenting a notice of default and election to sell for recording in the Office of a County Recorder shall, no later than 10 days from presenting the Notice of Default for filing, send by certified or registered mail, return receipt requested, or when available, electronic notification with prior authorization by parties, to the grantor or person who holds title of record of an owner-occupied residence, copies of the Petition for Mediation Assistance in the manner provided for by NRS 107.086 (2). (b) The mediation process under these rules shall be initiated by the filing of a Petition for Mediation Assistance and delivery by certified mail, return receipt required or by electronic transmission if authorized by the parties by a grantor or person who holds title of record of an owner-occupied residence on “forms” provided by the District Court and payment of the fees required by Rule 1(2) herein. (1) The eligible participant shall, not later than 30 days after the service upon him or her in the manner required by NRS 107.080 of the notice of default and election to sell, complete the Petition for Mediation Assistance and deliver it, along with the fees required under Rule 1(2), to the District Court. (2) The eligible participant shall also mail a copy of the Petition for Mediation Assistance to Home Means Nevada, Inc., or its successor organization, and to the trustee, by certified or registered mail, return receipt requested or by electronic transmission if authorized by the parties. (3) The trustee shall, within 10 days of notice of the receipt of the Petition for Mediation Assistance, deposit with the District Court the signed answer for mediation; a copy of the recorded Notice of Default; the mediation fees required in Rule 1(2) herein, including any fees received from the grantor, and any other fees charged by the District Court. Any delay by the trustee in providing the required documents and information to the District Court shall extend the time for mediation set forth in Rule 1(2). (c) If grantors or persons who hold the title of record have timely filed the petition and the trustee presents a Rescission of a Notice of Default and Election to Sell for recording in the Office of a County Recorder, the lender must obtain the written agreement of grantors or persons who hold title of record to stop the mediation from proceeding. The lender shall, within 10 days of the recording of the Rescission, deposit with the District Court a copy of the recorded Rescission, and, if applicable, the signed agreement between the lender and grantors or persons who hold title of record to withdraw from the Foreclosure Mediation Program. Should the District Court not receive the signed agreement within the time provided, the mediation process will continue as provided herein. (d) Failure by any eligible participant to timely file a Petition for Mediation Assistance with the District Court or to attend and participate at a mediation scheduled under these rules shall result in the District Court providing a notice to Home Means Nevada, Inc., or its successor organization, which shall issue a certificate stating no mediation is required, and that a foreclosure sale may be noticed according to law. [Added; effective July 31, 2009; amended; effective August 31, 2017.]