We’ve all read the stories about Nevada having the highest rate of foreclosures in the US.
Here’s one example of why that’s so.
The Nevada legislature passed a law to reduce foreclosures. They required all foreclosures to go through Mediation before the bank can seize your home. In this Mediation, they required the Lenders to follow two just rules: Bring all required loan documents to the mediation; have someone available who can approve loan adjustments.
In a recent case in Nevada, before District Judge Donald Mosley, the Lender showed up at the Mediation, and the mediator found that CitiMortgage failed to provide the legally required documentation and ruled the lender was in noncompliance.
The District Judge had several options available to him. Under the terms of the 2009 state law one option gives judges the authority to modify loans if lenders fail to abide by Nevada Foreclosure Mediation Program guidelines.
He could also order CitiMortgage to produce the documents, and then if they failed to, hold them in Contempt of Court, impose sanctions, and possibly dismiss the case. CitiMortgage appealed the Mediators finding of noncompliance to the District Judge, who sided with the lender and refused to find CitiMortgage acted in bad faith.
During that October hearing, Mosley also said he would never modify a loan from the bench.
What is most troubling here, is that CitiMortgage failed to supply to documentation that proves that they have a right to foreclose on the property, and the Court doesn’t seemed to be inclined to make them produce it.
Who cares about the rights of property owners?