If you've read our blog the last few months, you know that we have always said that Obama's housing programs were fluid programs that would expand to help more homeowners. Lo and behold, on July 2, HUD Secretary Shaun Donovan announced that homeowners who are 125% underwater on their mortgages would now qualify for Making Home Affordable refinancing programs. Prior to the announcement, mailings about the program have been sent to over 1 million borrowers who might qualify for refinancing; to date 200,000 trial loan modifications have been offered. Yet, housing values have tanked so low that many homeowners have been unable to get help under the program - especially in very hard hit areas like Nevada.
Exercising a flair for the dramatic, Donavan made the announcement between two homes on Pine Valley Drive in Las Vegas that showed great contrast. Claiming that Nevada is "ground zero" for foreclosure activity, he was flanked on one side by a well kept home with a beautiful lawn and on the other, by a vacant home with a dried out lawn and foreclosure sign. Donovan underscored the reality of foreclosures. Despite how personally devastating they can be to people who undergo them, they also affect neighborhoods and whole cities especially when several homes on a street or neighborhood are foreclosed on, which can give a blighted look to the area. You could go on to say that widespread foreclosures bring an ever-growing black cloud over the neighborhood that influences opinions about the place as property values are dropping. The premise of expanding the program is that more access to refinancing options will reverse the trend.
The increase in the plan limit, formerly 105%, is expected to help some of the 67% of Nevada homeowners whose mortgage balance exceeds their home's value. This means someone with a $375,000 mortgage would be eligible of the program is the home is still worth $300,000.
In Las Vegas, of course, the questions are: how many people are 125% underwater or less? Since being current is a requirement for the government refinancing program, how many people are have not been over 30 days late on their underwater mortgages? How many underwater homeowners have their loans not covered by Fannie Mae or Freddie Mac, the only loans eligible for refinancing under making Home Affordable?
The HUD Secretary did not offer answers to these questions but went on to promise that his department was searching for the facts. HUD Foreclosure Rapid Response Teams would be deployed within two weeks to assess needs in the Las Vegas zip codes based on delinquency rates. The group would listen to neighborhood groups who are familiar with the local housing scene, including lenders, housing counseling agencies, and citizens, and develop specialized recommendations, which another HUD team would implement. Since HUD has received an increasing number of housing discrimination complaints as the housing crisis has escalated, Fair Housing counselors would join the Las Vegas office to educate the public, receive and investigate complaints, and monitor Section 8 vouchers and public housing units.
Even though the government has not yet released a swooping program that will benefit all underwater homeowners, the new program is coming closer - especially when viewed in conjunction with the HUD Foreclosure Rapid Response Team initiative.
http://www.makinghomeaffordable.com/pr_07012009.html
Need help to prevent foreclosure? For more information on the Home Affordable Refinance Program, visit makinghomeaffordable.gov or call 1-888-995-HOPE. The N&Y Team can help you find the right direction.
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
www.VegasRealProperty.com
Click here to get a market snapshot of your home value!
;)
;)
