This is some great news for us in Las Vegas. The following is an artical from the Las Vegas Sun:
Nevada will receive $102.8 million as part of a program to help residents who are trying to avoid foreclosure on their homes.
President Obama announced the "Hardest Hit Fund" earlier this year during a visit to Las Vegas. Nevada is among five states that will receive funds from the program, and Senate Majority Leader Harry Reid said Nevada will receive the largest amount per resident.
“I’ve been working hard to help stabilize Nevada’s housing market and provide resources for Nevadans who are struggling to keep their homes,” Reid said in a prepared statement this morning. “I told President Obama and Secretaries Donovan and Geithner that Nevada needs help and I thank them for responding. Now it’s up to banks and credit unions to step up to the plate so that this $100 million will have the maximum benefit for homeowners to reduce principal amounts and provide lien relief.”
The states approved to receive aid saw at least a 20 percent or greater decline in average housing prices. The money will be used to help homeowners who owe more on their homes than they're worth.
"Among those who qualify for this help are borrowers who are unemployed, homeowners who are underwater on their mortgages and Nevadans struggling with second liens," Rep. Shelley Berkley said in a statement. Rep. Dina Titus called it "a critical step forward that will make much-needed funds available to help families stay in their homes."
The $102.8 million for Nevada is set to be used in this way:
· Nevada will create a mortgage modification program using a combination of forgiveness and forbearance with a goal of reducing principal to less than 115 percent of loan-to-value and lowering payments to 31 percent of debt-to-income.
· The state will also offer assistance to reduce/eliminate second liens with earned forgiveness over a three-year term.
· The state will provide allowances for appraisal and transaction fees, moving fees, a legal allowance for up to three months,and a combination of incentives for borrowers and servicers to facilitate short sales.
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