Legislation mandating mediation before a home can be foreclosed on was given unanimous approval by the Assembly on Tuesday.
Nevada has the nation's highest foreclosure rate. AB149 requires that, before a non-judicial foreclosure can occur, the borrower and owner of the mortgage must sit down and try to reach agreement on how to keep the homeowner in the house.
The Nevada Supreme Court will administer the program. Assembly Speaker Barbara Buckley said more than 100 lawyers and all senior judges in the state have agreed to serve as mediators. She said they will get the training to become mortgage mediators and to handle those cases for a maximum of $300.
According to Buckley, mediation could prevent an estimated 17,700 foreclosures in Nevada, saving more than $1.6 billion in lost tax collections.
"We can help stabilize neighborhood real estate values, keep Nevadans in their homes and stem lender losses that are drying up access to credit," she said.
AB149 goes to the Senate.