Real Estate Agent Recommends Nevada Hardest Hit Fund For Upside Down Homeowners

Sept. 10, 2012 - PRLog -- Las Vegas real estate agent Evans Small with Pulse Realty Group, LLC, has been guiding homeowners through the short sale process for the past four years. What he confirmed Friday during a Q&A session with the Nevada Hardest Hit Fund is there is over $170,000,000 available to help Nevada homeowners facing foreclosure.

After two years of trial and error, the money is now starting to flow to qualified homeowners in every stage of mortgage hardship, including foreclosure. There are seven programs set up to help, from those nearing their first default, to those who have recently found new jobs and need help catching up with missed mortgage payments. Understanding that homeowners need access to this information, Mr. Small established a dedicated page on his website, http://www.marketvegashomes.com/default.asp.pg-NevadaHardestHitFund , to get this information out to all who are considering a short sale or letting their home go to foreclosure.

Briefly, the programs are as follows. The Mortgage Assistance Program, which is for temporary help, will provide up to $1,000 per month toward the first mortgage for up to nine months for those who have experienced the involuntary (very important!) loss of job or reduction in income. The homeowner must come up with a minimum $75 per month toward completing the FULL payment due. After 9 months, the file can be reviewed with an extension for an additional 3 months possible.

For those facing permanent financial hardship due to permanent disability or retirement, the Mortgage Assistance Program Alternative will offer the same $1,000 contribution toward the full monthly mortgage payment (including principal, interest, taxes and insurance) with the borrower required to pay a minimum $75 to pay fully the payment due.
This program assumes the borrower will resume the full payment after 9 months.

The Reinstatement Program is for individuals who fell behind in their mortgage but can now fully catch up with their payments. The program offers up to $12,500 to help bring homeowners current on their mortgage. The entire past due balance must be eliminated in order to qualify.

The Short Sale Program is designed to help those homeowners selling their home thorough the short sale process move on to their rental home in Nevada. Again, it is available only to those staying in Nevada. The program will pay 3 months rent up to $4,500, as well as storage costs up to $1,000 and delinquent HOA dues and utility liens up to $2,500. This program MUST be applied for as soon as the short sale has been approved. Monies can be paid after close of escrow on the short sale.

There is a Second Lien Relief Program will will help homeowners extinguish their second mortgage or home equity line of credit. The Fund will contribute up to $8,500 toward relief in a short sale situation, or up to $16,500 when the home is being retained. This second lien program must be completed before the homeowner enters into a HAFA mortgage modification process.  

The Principal Reduction Program aids homeowners whose loans are held by private investors (versus backed by FannieMae or FreddieMac). A reduction of up to $100,000 is possible, with $50,000 the maximum contribution from the Hardest Hit Fund. The loan servicer would have to match that amount in order for the full benefit to be realized. Theoretically, a homeowner could end up with some equity in the home after the successful completion of this process!

Finally, there is Principal Curtailment involving the HARP 2.0 program with FannieMae and FreddieMac backed loans. Those homeowners could receive up to $50,000 as part of a HARP refinance. However, the loan to value of the property must be in the range of 100%-150%, meaning the homeowner will not have equity after the completion of the process.

Evans Small felt that at last some relief may finally be available after years of confusion, false hopes brought on by eager government announcements. Word is getting out. About 5,000 homeowners applied for assistance last month alone. It was recommended that applicants allow up to 60 days lead time. The Nevada Hardest Hit Fund, with offices in Las Vegas and Reno, can be reached at 855-428-4357.