There are a couple of methods that homeowners in Nevada that can delay a foreclosure sale on their home. Presently the Covid-19 pandemic has created an emergency situation so the mortgage servicers have set up a several programs to assist homeowners that are delinquent due to economic hardship from the pandemic. Additionally, there is a state foreclosure mediation program that has been set up to assist homeowners in Nevada to obtain a modification or another option than foreclosure, i.e. a short sale or a deed in lieu of foreclosure.
1. Programs available to assist homeowners that have had financial difficulties due to the Covid-19 pandemic. The CARES Act has provided mandatory mortgage forbearance for any loans that are government back loans, these include the following agencies:
• Fannie Mae or Freddie Mac;
• U.S. Department of Veterans Affairs (VA);
• Federal Housing Administration (FHA), including home equity conversion (HECM) reverse mortgages, and mortgages under the Indian Home Loan Guarantee program; and
• U.S. Department of Agriculture (USDA)
If you have a loan that is not a federally backed loan then you will need to request a mortgage forbearance/loan modification from your mortgage servicer, if it has one available.
Most of these mortgage forbearance plans will allow the borrower to miss three months of mortgage payments, and these payments are put at the end of the loan. The borrower will have to pay this amount back if they refinance the loan, sell the property, or when the loan is paid off. Some of these plans will include the impound accounts for taxes, insurance, etc. But some required these payments to be paid upon completion of the forbearance term. You need to contact your mortgage servicer to determine what type of loan you have, and what protections are available under your mortgage loan.
2. The second type of protection is to seek a loan modification from your mortgage company, and by requesting foreclosure mediation before a foreclosure is completed.
These loan modification options vary from company to company. Most mortgage servicers on residential real estate loans will have a loss mitigation department that can give you all the options available for your loan.
In Nevada residential homeowners are entitled to request foreclosure mediation prior to the mortgage holder getting authority to foreclose on its mortgage loan. This requires the homeowner to opt in for the mediation when the mortgage holder seeks to foreclose on its loan. This must be done in the first 30 days after the homeowner receives a notice of default from the mortgage holder on a non-judicial foreclosure. More information can be obtained about the mediation program at the following website http://www.homemnv.org/foreclosure-mediation-program/.
If you have further questions regarding your foreclosure defense options please contact my office to set up a consultation and review your options.