Bill > AB300

Introduced Session

Legislative Counsel''s Digest: Existing law sets forth procedures governing foreclosures on real property upon default. A trustee under a deed of trust, commonly referred to as a lender, has the power to sell the property to which a deed of trust applies, subject to certain restrictions. (NRS 107.080, 107.085) Existing law sets forth additional restrictions on the lender s power of sale with respect to owner-occupied housing by providing a grantor of a deed of trust or the person who holds the title of record, commonly referred to as a homeowner, with the right to request mediation under which he or she may receive a loan modification. (NRS 107.086) Sections 7-10 of this bill revise the procedures concerning such a mediation. Specifically, section 7: (1) requires a mediator to complete and submit a statement that includes the findings of the mediator; (2) authorizes the homeowner to petition the court for an order imposing sanctions against the lender; and (3) creates a rebuttable presumption that the court will impose sanctions against the lender under certain circumstances which include, without limitation, the failure of the lender to attend the mediation. Section 8 of this bill authorizes either party to the mediation to petition for judicial review if the party is dissatisfied with the findings of the mediator. Section 9 of this bill requires, under certain circumstances, a foreclosure to take place within 90 days after the specific date by which the homeowner is required to vacate the property pursuant to an agreement reached by the parties to such a mediation. Section 10 of this bill sets forth certain requirements governing an agreement reached by the parties to such a mediation that authorizes a sale of the property in which the sale price would be insufficient to pay to the lender the entire outstanding balance of the lien upon the trust property and the costs of the sale. Section 13 of this bill prohibits a lender from assessing any fee to a homeowner for participating in such a mediation or any subsequent court action. Section 6 of this bill establishes additional duties of the Mediation Administrator, including, without limitation, collecting and compiling statistics on the participation of lenders in such mediations.

AI Summary

Kelvin Atkinson (D)*,  Jason Frierson (D)*,  William Horne (D)*,  Steven Horsford (D)*,  John Oceguera (D)*,  Debbie Smith (D)*,  Steven Brooks (D),  Irene Bustamante Adams (D),  Marcus Conklin (D),  Olivia Diaz (D),  James Ohrenschall (D),  Tick Segerblom (D), 

Vetoed by the Governor. (on 06/16/2011)

Official Document