Bill Summaries: S467 (2013-2014 Session)

  • Summary date: Mar 27 2013 - View summary

    Amends GS 7A-38.3B (Mediation in matters within the jurisdiction of the clerk of superior court), deleting a reference to GS Chapter 45 in GS 7A-38.3B(b), (Enabling Authority) (previously, clerks of superior courts did not have jurisdiction over GS Chapter 45 to order mediation).

    Creates new GS 7A-38.3B(c)(5), providing that holders or their appropriately authorized agents and all people entitled to notice pursuant to GS 45-21.16(b) can be ordered by the clerk to attend mediation. Amends GS 7A-38.3B(f) (Costs of Mediation), providing that in mediations ordered pursuant to GS 7A-38.3F, costs will be the responsibility of the the holders or their authorized agents and anyone entitled to notice under GS 45-21.16(b).

    Amends GS 7A-38(g) (Inadmissibility of Negotiations), (i) (Agreements) and (j) (Sanctions), establishing that the requirements and language of these sections also apply to mediation conducted pursuant to GS 7A-38.3F (previously the language and requirements of these sections only applied to to mediations conducted pursuant to this section).

    Enacts new section GS 7A-38.3F (Mediation in certain foreclosure proceedings).

    GS 7A-38.3F(a) (Mandatory Mediation) requires that, prior to filing a notice of hearing to foreclose under the power of sale, the substitute trustee must initiate mediation pursuant to this section and GS 7A-39.3B. Actions for foreclosure under the power of sale in a deed of trust will be dismissed unless the requirements of this section have been satisfied.

    GS 7A-38.3F(b) (Initiation of Mediation) provides that prehearing mediation will be initiated by the substitute trustee. The substitute will file a request for mediation with the clerk of superior court. A copy of the request must be mailed by certified mail to  the holder and to each person entitled to notice.

    GS 7A-38.3F(c) (Selection of Mediator) provides that the clerk will provide each participant with a list of certified mediators from the Dispute Resolution Commission.  A mediator can be appointed by agreement or by the senior resident superior court judge and in accordance with rules promulgated by the Supreme Court. Provides the qualifications mediators must possess to conduct mediation pursuant to this section.

    GS 7A-38.3F(d) (Documents to be provided in advance) provides a list and description of the documents that must be provided for mediations conducted pursuant to this section, along with any associated timeframe for provisions of those documents, including payment history for the previous 12 months or since the date of default and the appraisal or broker price opinion most recently relied upon by the servicer.

    GS 7A-38.3F(e) (Waiver of Mediation) provides that participants ordered to mediation pursuant to subsection (a) of this section may waive the mediation in writing to the mediator.

    GS 7A-38.3F(f) (Certification that mediation concluded) provides that immediately upon waiver or conclusion of mediation, the mediator will prepare a certification stating the date on which the mediation was concluded and the results.  The original certification will be filed with the clerk and a copy given to each participant. Any mediation requirements are complete with the filing of the mediation certification, except as stated otherwise in the certification.

    GS 7A-38.3F(g) (Related Provision) provides that all mediations required by subsection (a) of this section will be conducted in accordance with this section and GS 7A-38.3B.

    Effective October 1, 2013.