Nevada Hardest Hit Fund can help homeowners
Q: Have you heard of this organization (Nevada Hardest Hit Fund) that helps people who are underwater, owing more on their mortgage than their home is worth? KLAS-TV, Channel 8 recently gave out a number to call for help if you are underwater on your home, as is everyone in Nevada.
I called the number, and they said they could help us with our second mortgage by talking to Citibank and asking them to reduce or clean off the entire loan of $39,449. We have a first loan with Wells Fargo for $205,000. They sent us forms to fill out and, of course, want your entire life.
We are just a little bit afraid to send all the information to them, not knowing if they are a legitimate organization. I went to Citibank and they never heard of this program but said there are many out there, so maybe it was OK, but to check it out. Have you heard of this organization? We would appreciate hearing from you. Thank you.
- Mary Jane and Jasper P., Las Vegas
A: Yes, I've certainly heard of the Nevada Hardest Hit Fund. It is a state program designed to help distressed homeowners. You can call the organization at 702-570-5662 or visit www.nevadahardesthitfund.nv.gov.
The agency's website offers this description: "With one of the highest foreclosure rates in the nation, Nevada was selected to be one of the first five states' housing finance agencies to receive funds from the U.S. Treasury's Hardest Hit Fund. The state of Nevada was awarded over $150 million in funds available to qualified recipients. The U.S. Treasury approved the nonprofit Nevada Affordable Housing Assistance Corp. to oversee the fund serving as a support arm for the Nevada Housing Division, Nevada's housing finance agency."
As you can see on the organization's website, Nevada Hardest Hit Fund provides seven programs to help Nevada homeowners who are at risk of default or foreclosure. They range from helping homeowners seek mortgage modifications and mortgage principal reductions to help accelerating short sales. Each program has its own set of eligibility criteria and rules.
Also note that the servicer of the mortgage loan on your home must agree to participate in the program.
You will see that there is a list of participating programs and servicers, including the nation's largest banks, like Bank of America, Wells Fargo, Chase, Citi and others.
Your situation must be looked at in detail by an expert to determine the amount of these funds, if any, that you can access. I can at least tell you one thing for sure, and that is the banks do not have a "set in stone" procedure for handling short sales, loan modifications or foreclosures.
So, always check with an attorney that you trust if anything sounds too good to be true, or if you feel that you have not been given proper consideration. Filling out various financial forms and asking for all sorts of personal information is something that all of these programs typically require.
Realtors are constantly letting our government officials in Washington know that we could all use more uniformity in these documents, forms and procedures. Some consistency would certainly help speed things along and help more homeowners faster.
Deal directly with the Nevada Hardest Hit Fund and similar organizations devoted to helping distressed homeowners, as opposed to paying a third party what can amount to thousands of dollars to do it for you. After all, such programs are free and were created to help people like you save money and possibly your home.
Kolleen Kelley is the 2012 president of the Greater Las Vegas Association of Realtors. To ask her a question, email her at ask@glvar.org. For more information, visit www.lasvegasrealtor.com.
