Failed Nevada Mediation Is Basis for Court Review

Posted on February 7, 2011

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The Nevada Supreme Court is hearing an appeal today based on alleged bad-faith negotiating by Wells Fargo in a mediation hearing.

“In a brief filed with the state Supreme Court, Crosby said the lenders, National Default Servicing Corp., and Wells Fargo, “in bad faith refused to make any arrangements to help (Leyva) stay in his home. Instead, lender offered nothing but exit strategy.”

This case is important because it means that a mortgage company will not be able to just “lose” documents and then foreclose, making the mediation a sham. The exact definition of bad faith by mortgage companies in mediation hearings will be outlined by the Nevada Supreme Court, which will impact mediations across the country. See the article in The Las Vegas Review-Journal.

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