Nevada:HAMP or Mediation?

[lvegascott]

Without going into the details of why my wife and I find ourselves in this mess, our household income has decreased close to 50%. We could see the hardship coming and applied for relief in May. We knew that we were approaching a problem but were still current at that time. After much paper going back and forth between us and the bank, we missed our July payment. More paperwork went back and forth. We owe on our home, (which we love, and don't want to lose) $250k. On Zilllow.com, it's now valued at $136k. A house identical to ours and valued at 142k, just sold for $90k three doors down. The difference between that house and mine being a 32x16 pool. Nevada just passed a law that states that all homeowners have the right to force their bank to sit down for a mediation should the bank file default. The holder of the note must produce the note and be there to negotiate in good faith. If they do not, they can be penalized and any proceedings toward forclosure can be ceased. Our loan is a Freddie. We thought this would be the way to go because our request for modification or forbearance was going nowhere. We missed our August payment and in the latter half of August, we received the official paperwork for HAMP. Paperwork in by Sept. 24th, and 1st payment of three due Oct 1st. Heres the delimna. If the modification fails after paying 3 months, we will have no funds to relocate. Any advice?