LAS VEGAS -- A new state program aimed at bringing troubled homeowners face to face with their lenders is having some success.
More than 90,000 Nevada homeowners received letters of default within the past year. Of those, 11,000 participated in the Nevada Foreclosure Medication program. And, to date, nearly 4,000 homes have been saved.
The law to help homeowners was passed in 2009 as Nevada headed to the top of the list for foreclosures.
Officials say the program is successful as long as lenders to come to the table to ready to negotiate.
"You have two stakeholders, and you provide the forum for them sit down, and actually discuss the loan at hand. Nevada is the only state that actually requires the lenders to do something. The lenders must participate, if the homeowner elects mediation. That's why we're called mediation with a kick," said Verise Campbell, Nevada Foreclosure Mediation program.
Campbell does add that 30 percent of lenders did not participate in the mediation process even though they are required to legally. She says if lenders don't participate, they can not foreclose on a home. She said, instead they must file another letter of default, and then go before a judge again.
