Nevada will be receiving nearly $103 million from the “hardest-hit fund” to assist homeowners who are underwater or delinquent on their home mortgages. The money will be used to subsidize mortgage payments for the unemployed, reduce principal balances on homes with negative equity, paying second liens (HELOCs for instance) and facilitating short sales and deeds in lieu of foreclosure. Nevada is creating a mortgage modification program which will a combination of forgiveness and forbearance with a goal of reducing principal mortgages to less than 115 percent of loan-to-value and lowering payments to 31 percent of debt-to-income.
In addition, the state will make assistance available to reduce or eliminate second liens. For those homeowners selling as short sales, there will be allowances for appraisal and transaction fees, moving expenses, a legal allowance for up to three months and incentives for borrowers and loan servicers to do short sales.
The federal funds must be administered by a nonprofit entity with oversight by the U.S. Treasury. The funds will be administered by Nevada Affordable Housing Assistance Corps in Nevada.
More information may be found at the NAHAC.org website.