Nevada mediation programs helps majority of homeowners

Nevada continues to be one of the hardest hit areas by the recent fiscal downturn, due to a rising rate of bankruptcies, credit card debt and foreclosures.

Despite this, a recent study of the state’s foreclosure mediation program found that in its first year, it was able to keep many struggling residents in their homes.

Former Nevada Assembly Speaker Barbara Buckley said of the 6,021 mediations conducted statewide, only 13.2 percent were unsuccessful, ABC News reports. The majority of these negotiations resulted in no foreclosure due to the fact that lenders did not appear at the mediations or were not able to produce documentation that they owed the mortgage loan on the property.

Since the program was enacted in September of 2009, 66 percent of the mediations resulted in agreements between the lender and the homeowner; however, Nevada still ranked among the states with the most foreclosure filings as of November, the news source says.

In addition, many more homeowners could incur more debt if they decide to sell these homes. A recent report by the University of Nevada Las Vegas says the average $300,000 home in the area is now worth $80,000 less in the current market compared to pre-recession levels.