Resources available for help
On March 6, I wrote a column about how federal funds are being funneled into Nevada to help homeowners. I received more comments about this column than any other topic I've covered this year. These questions had at least one thing in common. Many homeowners are hurting, and they don't know where to find help. This is a continuation of covering that topic.
I received message from Chrissy G., who asked what government officials are doing to help the large percentage of local homeowners who are "underwater," owing more on their mortgages than their homes are now worth.
"I keep reading and hearing about the government bailout for homeowners who are at risk for foreclosure," she wrote. "We, in Las Vegas, were obviously the hardest hit. My problem: I do not have a hardship (even though my husband lost his job, I went to work full-time and we can afford our mortgage.) But, our home is worth $150,000 less than I owe due to the drop in appraisal value. I put 25 percent down on a $500,000 home to avoid a jumbo loan and now all of that equity is gone. We can't relocate for my husband to work, so we will stay here. But why isn't anyone in the government or in our local government trying to have all underwater homes readjusted to current market value to avoid people from walking away?"
This reader goes on to say she does not intend to walk away from her mortgage, but knows others who are.
"If we can't pay, then I can get help," she wrote. "But because I can pay, and didn't buy beyond my means, I am suffering. Please help me get the word out that if there isn't something done to readjust home values/mortgages, I have a feeling there will be plenty more people walking away."
Well, Chrissy, I'm happy to help you spread the word about a situation that can seem unfair.
As previous columns pointed out, the federal government is trying to address such problems. When President Barrack Obama and Nevada Sen. Harry Reid came to town Feb. 19, they said at least part of the more than $100 million being allocated to help Nevada homeowners this year is intended to help local homeowners who are "underwater" in their homes. They said this money is being earmarked for bridge loans, providing incentives for lenders to modify home loans and to help people who have lost their jobs and are now in danger of losing their homes. The Nevada Housing Division is administering these funds and may have more information soon.
Homeowner Dave B. also wrote to say he is "way upside down" in his home. He said he has asked his mortgage company about refinancing his home mortgage, ideally to extend his current interest-only, 30-year mortgage to a 40-year loan, but that "nobody will touch me." For folks like Dave and others who have contacted me, I'd suggest the following local resources:
Housing Help for Nevada : This nonprofit agency provides free counseling to homeowners facing foreclosure. Call 804-9777 or visit housinghelpfornevada.org.
Consumer Credit Counseling: This nonprofit offers free financial counseling and education. Call 364-0344 or visit cccsnevada.org.
The Legal Aid Center of Southern Nevada: It offers free foreclosure mediation classes every Thursday night at 5:30 p.m. at the Boyd School of Law at UNLV. Legal Aid matches qualified homeowners with a pro bono lawyer to help them through the process. Call 386-1070, extension 155.
There are no easy answers. For more information, consult a qualified Realtor or visit lasvegasrealtor.com.
Rick Shelton is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 20 years. GLVAR has 12,500 members. To ask him a question, e-mail him at ask@glvar.org. For more information, visit lasvegasrealtor.com. Questions may be edited for space and clarity.
