Mortgage forum aids customers

It was going fairly well for Victor King at one point. His house in the southwest part of the Las Vegas Valley was appraised at $800,000 and business, at a company that tracks vehicles using GPS devices, was good.

But business was tightly tied to the construction industry, and when that fell off, King found himself staring at bills he wasn't sure he could pay.

"My mortgage was $480,000 and we were having difficulties making the payments, because my company's business has dropped off 62 percent this year," he said Friday.

But he's getting a break as one of about 300 people who scheduled appointments with Countrywide and Bank of America representatives Friday and today at a forum organized by the cities of Las Vegas and North Las Vegas.

"I got a forbearance," he said. "It allows me to pay about 25 percent of the total mortgage payment for four months, and then they'll review."

By then, he hopes that a public works program promised by President-elect Barack Obama will be getting started, which would "put us up far beyond where we were before." If not, it'll still give him time "to know pretty much where the company is going to go."

Time and a little financial relief constitute a happy ending these days.

Nevada continues to lead the nation in foreclosed homes, and even programs like this one can't help everyone, said Michele Johnson, president and CEO of the Consumer Credit Counseling Service of Southern Nevada.

"They get to sit down face to face and talk with their lender, which is not accomplished easily," she said. "Banks don't want to be landlords. Sometimes, however, there really aren't options that will help a customer remain in a home."

Joe Ramos and his wife will be able to stay in their Silverado Ranch home for now. Their adjustable-rate mortgage reset last year and added $700 to the monthly mortgage payment -- which was still fine, until he took an $1,800-a-month pay cut.

"That killed me," he said. "We got to the point where we had used up all our savings trying to make the payment."

His lender rolled back the increased interest rate so that the payment is the same as when they first took out the loan in 2001.

"It's going to keep us in the house until hopefully the economy turns around," Ramos said, at which point his job -- teaching heating and air conditioning service -- will pick up as well, as people and job training programs will have money to spend again.

People who want an alternative to foreclosure need to have patience and perseverance, said Johnson, of the credit counseling service.

"The lenders are very busy right now" and are dealing with loans across the country. People who have sent documents to a lender need to check weekly on their status, no matter how much time they end up spending on hold, she said.

"This is definitely a time when the squeaky wheel has its advantages," Johnson said.

Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.