(AP) - A new Nevada law requiring lenders to meet with homeowners in danger of foreclosure is expected to create numerous requests for mediation.
The Nevada Supreme Court, which is drawing up rules for the mediation sessions, held the first of two public hearings on the rules Tuesday. Chief Justice James Hardesty expects there will be 1,200 to 1,500 requests each month.
Under AB149, a homeowner who gets a foreclosure notice can request a meeting with lenders and a trained mediator in efforts to reach a mutually acceptable resolution.
During Tuesday's hearing, Justice Mark Gibbons said there are different scenarios for every person who borrowed money and can't make the house payment. He urged lenders to be flexible and make the mediation process a success.
Under the proposed rules, homeowners and lenders will share the costs of the mediators with a maximum $200 assessed to each party.
The court is going to base the program in Las Vegas. The first mediation sessions will be conducted by senior judges and Supreme Court settlement judges. More than 350 lawyers have expressed interest in serving as mediators but will be required to have training, Hardesty said.