Despite good news on the Las Vegas housing front about falling sales prices and increasing sales volume, foreclosure rates are still among the highest in the nation.  Since one in eight Nevada homeowners (11.75%) is currently behind on their payments, a landslide of future foreclosures is likely. 

Many banks as well as Fannie Mae and Freddie Mac suspended foreclosures while the Obama housing rescue plan was under development.  The moratorium ended in March, so pre-foreclosure filings jumped to 11,593 in March from 7,635 the previous month.  Many properties remained backed up in the system but will be foreclosed on soon.

Some delinquency is tied to job loss or cut backs, but much is a byproduct of many people facing the situation of owing much more than the home is worth.  (Las Vegas home values have fallen 40%.)  Some people have bought smaller homes while their credit was still good and let the original home go into foreclosure.  This buy-and-bail technique is harder to pull off now with stricter lending requirements and has negative consequences on a person's credit report.  Many others are struggling to make the payment and hoping for a creative solution that will pull them out from being underwater.  In the absence of that, many homes could slide into foreclosure.

If you are a homeowner at risk of foreclosure, now is the time to act to avoid it.  Even if you don't want to stay in your home, you should take steps to be in control of the future for yourself and your family.  Lenders will start calling you once your payment is 30 days late, so communicate with them.  They may be able to help you by modifying your loan or even suspending the payments for a time.  So what are the options to avoid foreclosure?

Loan Modification:  Changes the terms of your loan to extend the terms, lowers the interest rate, or in some cases, lowers the principle.  The President's Making Home Affordable program (as presently set up) may help you if you are not more than 105% underwater.  Banks are jumping on the bandwagon and offering this type of program too.  This is a good option if you want to keep your home and you have the income to make the payments.

Repayment:  Gives you the chance to make a partial payment on delinquent payments and catch up the rest in the future.  This option is workable if you experience an emergency or a brief job loss, where you will be able to catch up once things have returned to normal.  Lenders expect you to be on time in the future.

Forbearance:  Suspends your payments due to a disaster or job loss, sometimes for up to six months. Once you start paying again, you are expected to catch up what you missed, usually within 12 -18 months.

Partial Claim:  On FHA loans, HUD will advance the payments in return for a promissory note due when the house is sold or the mortgage is paid off.

Chapter 13 Bankruptcy:  May reduce or eliminate some other obligations but leave your loan unchanged while permitting delinquent amounts to be repaid over time.

Deed in Lieu of Foreclosure:  You give your home back to the bank.

Short Sale:  Lender agrees to take less than what is owed on the home.  New additions to the President's plan offer incentives to lenders who facilitate short sales and deed-in-lieu.  These add-ons may help underwater homeowners.

Need a frank discussion about your options if you are in trouble?  Be assured that we will do our best to help you avoid foreclosure.  For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

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