Monday, October 25, 2010
Saturday, October 16, 2010
Sunday, October 10, 2010
In Florida, lenders are requesting the full disclosure of private financial information from borrowers prior to mediation, yet the lenders furnish no information regarding their financial stability. Normally, personal financial disclosure is given during discovery in aid of execution after a judgment has been rendered.
This is true in Nevada, as well, under the foreclsoure mediation rules. Under the promise of transparency and information symmetry, borrowers are invited to provide just about every item necessary for the lender to evaluate how collectible an eventual deficiency judgment may be. And what must the lender provide? Well, according to the law, all of its loan documents, verification of their authenticity and a chain of title to the loan, and an authorized representative available to negotiate an extra-judicial settlement.
And what comes first, the chicken or the egg? The borrower can be disqualified from mediation if he is untimely, inaccurate or misleading in submitting his financial information. After the borrower complies, what happens if the lender is not equally forthcoming? So far, the Nevada program reports no penalties being imposed for lender noncompliance.