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									 To report a problem with your lender,                                            TRUST DEED FORECLOSURE                                       MANDATORY MEDIATION
  mortgage broker, or escrow agency
                                                  N E VA D A L E G A L                    TIMELINE
                                                                                                                                     Beginning July 1, 2009, your lender must in-
                                                      SERVICES                 Record Notice of          As soon as 1 day after
                                                                                                                                     clude with your notice of default a notice advis-
                                                                                                                                     ing you of your right to request mediation. You
      Mortgage Lending Division                                                Default and Notice of            default
                                                                                                                                     will also receive two envelopes and you must
                                                                                                                                     either elect or waive (give up) mediation within
The Division is authorized to enforce the
                                                                               Mail Notice of Default    Same day as Notice of       30 days by sending notice to the mediator and
statues and regulations pertaining to                                          and Notice of Mediation     Default recorded          your lender. You must also deposit $200.
Mortgage Bankers, Mortgage Brokers,
Mortgage Agents, Escrow Agencies and
                                                  FORECLOSURE                  Mediation Request         Within 30 days of No-       Mediation is mandatory and you and your
                                                                                                           tice of Mediation         lender will sit down with a mediator to discuss
Escrow Agents. If you feel a mortgage                                                                                                ways to avoid or lessen the hardship of foreclo-
company has given you false informa-                                           Mandatory Mediation        Within 80 days of re-      sure. The mediation requires good faith on the
                                                                                                          quest of homeowner         part of both you and your lender. This means
tion you may contact:                                                                                                                you cannot request mediation to simply delay
                                                                               Danger Notice              No later than 60 days      the foreclosure sale. You should have (1) a
            Las Vegas Office                                                                                before sale date         steady income or the prospects of a steady
         7220 Bermuda, Suite A                                                                                                       income in the near future; or (2) you are willing
                                                                               Notice of Sale               3 months after re-       to give up your home (short sale) and want
          Las Vegas, NV 89119                                                                             cording Notice of De-
                                                                                                                                     more time and/or money to move (cash for
                                                                                                         fault or after conclusion
        702-486-0785/                                                                            of mediation, if later    keys). Good faith also requires your lender to
                                                                                                              than 3 months          accept a reasonable offer. Both you and your
                                                                                                                                     lender must also prepare and bring to the me-
                                                                               Time to Cure (pay off      No later than 5 days
 If you have an FHA mortgage or want                                           debt)                       before sale date
                                                                                                                                     diation certain documents.
 information on a HUD approved coun-
                                                                                                                                     For more information, visit the Supreme Court’s
         seling agency contact:                                                Sale by Auction            At least 21 days after     website at or call the
                                                                                                         Notice of Sale recorded     Mediation Program Administrator at (702) 486-
        HUD Counseling Agency                                                                                                        9380.
           (800) 569-4287
                                                                                                                                     Do not have unreasonable expectations. Me-
         TDD (800) 877-8339                                                           TRUST DEED FORECLOSURE                         diation can result in lenders reducing your
                                                                                                                                     monthly payment and giving you more time to
                                                                               Trust deed foreclosures comprise the majority
                                                                                                                                     catch up. No lender will wait indefinitely for
                                                                               of foreclosures in Nevada. A trust deed fore-
                                                                               closure is NON-JUDICIAL, meaning your                 payment and you must have a plan to get
                                                                               bank, lender, or mortgage servicer does not           caught up or move out.
                                                                               need to go to court to foreclose and sell your        Contact a HUD-approved housing coun-
                                                                               home. If you have missed a mortgage pay-
                                                                                                                                     selor: HUD funds free or very low cost housing
                                                                               ment, the lender or servicer begins the fore-
                                                     530 South Sixth Street    closure process by mailing and recording a            counseling nationwide. Nevada Legal Services
                                                      Las Vegas, NV 89101      notice of default and election to sell. This is       is a HUD-approved housing counseling agency
                                                                               notice to you that the legal foreclosure proc-        and can help with your foreclosure issue. Do
                                                         (702) 386-0404        ess has begun and you will have about 4               not wait for the notice of sale or eviction notice.
                                                    Toll Free (866) 432-0404   months to cure the arrearage or work some-            If you think you cannot pay your mortgage,
PLEASE NOTE: Laws are subject to change.
                                                                               thing out with your lender to save your home          contact your lender. If you have received a
Information contained in this pamphlet is based
                                                                               from a foreclosure sale.                              notice of default or any other foreclosure no-
on the laws in effect at date of publication.
                                                                                                                                     tice, you may contact Nevada Legal Services
                                                                                                                                     at (702) 386-0404.
       HUD Loss Mitigation Program               4. Offer a deed-in-lieu of foreclosure: You                Military Personnel and Spouses                    Making Home Affordable Program
                                                    and your lender agree that you will deed
Federal Housing Administration (FHA) Loans          you home back to the lender and move              The Service Members Civil Relief Act of 2003        In addition to the loss mitigation options of-
have other options for preventing foreclosure       out. You will lose the equity (if any), but the   (formerly the Soldiers’ and Sailors’ Civil Re-      fered by HUD for FHA insured loans, home-
and you should contact a Department of              lender may cancel the debt you how. Note:         lief Act of 1940) provides additional benefits      owners may also qualify for refinancing or
Housing and Urban Development (HUD)                 The cancelled debt may have adverse               to service members on active duty.                  loan modification through the Making Home
housing counselor the moment you think you          income tax consequences, as offering a                                                                Affordable Program.
will be late on your mortgage.                      deed-in-lieu of foreclosure or selling your       A court order is required before a home is
                                                    home for less than the amount of the debt         sold at a foreclosure sale while a service          Refinance option: The refinance option is
HUD’s programs depend on whether you have           may be reflected as income.                       member is on activity duty or within 90 days        only available to homeowners with Fannie
been delinquent for less than 90 days or for                                                          after the end of active duty. This law applies      Mae or Freddie Mac owned loans. You can
90 days or more (Loss Mitigation). With any      5. Pre-foreclosure or short sale: If you can         even in non-judicial foreclosure states like        see if your loan is owned by Fannie Mae or
FHA foreclosure, the earlier you contact HUD,       no longer afford to make payments on your         Nevada. Therefore, a lender cannot foreclo-         Freddie Mac by visiting their websites at:
the more options you will have. Even if you         mortgage, you may consider speaking with          sure on a home through the trust deed fore-            or
do not have an FHA insured loan, you may            a real estate agent about selling your            closure process. Instead, the foreclosing  /mymortgage.
still discuss the options outlined below with       home. Ask your lender to agree in writing         party must file a foreclosure action in court.
your lender. Your lender must also provide          that you can have a certain time to sell                                                              Homeowners must be current to qualify. This
you with a copy of the HUD publication PA           your home before foreclosure can occur.           If the home is sold at a foreclosure sale with-     means you cannot be more than 30 days late
426-H, May 19, 1194, How to Avoid Foreclo-          Your lender may also agree to accept less         out a court order, the sale may be rendered         with your mortgage payment in the last 12
sure.                                               than the amount of the current mortgage           invalid and could subject the lender to crimi-      months. The amount due on the first mort-
                                                    balance and you may be able to sell your          nal prosecution.                                    gage must be less than 125% of the home’s
Some options include:                               house for less than market value in order                                                             value (and second mortgages do not neces-
                                                    to sell your home quickly. This will avoid a      The court can also stay foreclosure proceed-        sarily make you ineligible).
1. Special Forbearance: You may be able                                                               ings while the service member is on activity
                                                    foreclosure affecting your credit. Note:
   to work out a written repayment agree-           Nevada has a high number of homes for             duty. The military service must materially          You will not be able to reduce the amount of
   ment with your lender to reinstate your          sale in a declining market.                       affect the service member’s ability to pay,         the principal balance on the mortgage and
   loan. The written repayment agreement                                                              though, in order to obtain the stay of the fore-    will not be able to get more than $2,000 to
   must have a term of at least 4 months and     Avoid scams and foreclosure prevention               closure proceedings. A foreclosure obtained         pay off other debts.
   may include a suspension or reduction in      companies: You do not need to pay fees for           by default during active duty or within 60
   payments for a few months to help the         foreclosure prevention, use that money on your       days after the end of active duty may be re-        Modification option: This option applies to
                                                 mortgage instead. If any business claims they        opened or set aside by the court.                   Fannie Mae and Freddie Mac owned loans
   borrower recover from the cause of de-
                                                 can stop your foreclosure immediately if you                                                             and to any servicer choosing to participate in
   fault.                                                                                             Active duty service members can also re-            the program. You can go to makinghomeaf-
                                                 sign documents, be very careful and read the
2. Loan Modification: The lender or loan         documents you are signing. Often foreclosure         quest a reduction in the interest rate on any to see if your servicer has
                                                 scammers have you sign blank papers, docu-           debt incurred prior to active duty. The inter-      elected to participate in the program.
   servicer may also be able to modify your
                                                 ments that appoint the scammer to act on your        est rate must be reduced to 6% while the
   mortgage to cure the default and make                                                                                                                  The loan must have been originated before
                                                 behalf, or even a deed of your property to the       service member is on active duty. The ser-
   the loan more affordable for the borrower.                                                         vice member must request the interest rate          January 1, 2009, and must have an unpaid
                                                 scammer. Many scammers ask you to sign
   A loan modification permanently changes                                                            reduction from the lender and provide proof         principal balance of less than $729,750. Sec-
                                                 immediately without consulting anyone else.
   one or more terms of the loan and can         You may then end up as a renter in your own          of the return to active duty in order to qualify.   ond mortgages, again, do not necessarily
   include changes in the interest rate, capi-   home.                                                If the ability to pay on the debt, though, is not   make you ineligible for the program.
   talization of any delinquent amounts, and                                                          materially affected by the military service, a
   extension of the term of the loan.            ACT NOW: Waiting for a letter regarding the          court can decide to raise the interest rate         Your mortgage payment must be more than
                                                 sale date is not recommended. As soon as             above 6%.                                           31% of your household’s gross income. You
3. Delinquent Refinance: Remember you            you miss a payment or believe you cannot                                                                 do not have to be in default in order to qualify
   must have equity in the home to be able       make a payment contact your lender or contact                                                            but must generally be in imminent risk of de-
   to refinance. This option also depends on     a HUD housing counselor. Nevada Legal Ser-                                                               fault. Your servicer can reduce your interest
   the borrower’s ability to continue making     vices is a HUD-approved housing counseling                                                               rate, extend payment terms 40 years, or fore-
                                                 agency. Call us toll free at (866) 432-0404.                                                             bear principal in order to make the loan af-
                                                                                                                                                          fordable for you.

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