Effect of Mediation on Multi Family Foreclosure Listings Evaluated- By: John Cutts
The mediation program, which aims to control all types of foreclosures in Las Vegas, including multi family foreclosure listings and commercial foreclosed properties, has received mixed reactions from housing market analysts. Based on statistics that covered a five-year period, over 40% of households who were involved in the mediation effort were able to retain their properties after making alternative agreements with lenders.
State officials have stated that based on the program's impact on foreclosure listings in the area, including North Las Vegas foreclosure listings, the mediation effort is serving its purpose. However, critics of the program have argued that statistics pertaining to the mediation effort do not show what percentage of the mortgage modification agreements is temporary and how many properties will eventually end up foreclosed.
Critics further argue that Nevada foreclosure listings continue to expand. They claim that this is due to lenders' lack of cooperation. They cited statistics which demonstrate that 29% of mediation scenarios involved lenders failing to appear during negotiation, while others ignore the provisions of the mediation rules.
Some local market observers have stated that, despite the presence of the mediation effort, thousands of properties end up in single family and multi family foreclosure listings. They also criticized the provision of the program which states that lenders cannot foreclose on a property should they fail to make an appearance during mediation, but they are still allowed to re-file actions of default and repeat the process all over again.
In response, state officials stated that although house foreclosure listings in the state remain high, statistics showed that mediation did help some homeowners stay in their homes. They also highlighted the difficulties in getting the Foreclosure Mediation Program on its feet, with thousands of mediation requests and foreclosures being processed while the mediation effort is being enacted.
Officials also asserted that since July 1, 2009 – the date when the program was first launched – up to June 30, 2010, over 90,000 default notices have been received in the state. Out of these default notices, 11,716 homeowners asked for mediation and almost 4,000 were able to complete the process and come up with alternative agreements with lenders. Supporters of the program have also stated that thousands of households were able to prevent having their properties included in single family and multi family foreclosure listings because of mediation.
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