Nevada hardest hit fund.
The federal government is providing Nevada with funds that will help homeowners who are behind on their mortgage payments and who are struggling. The program will provide assistance by reducing loan principal balances on homes with negative equity, money can be used to subside mortgages for the unemployed, funds for settling second liens, and the hardest hit fund can be used to help facilitate short sales and deeds in lieu of foreclosure.
The hardest hit program is tackling the state housing crisis in a different fashion then some of the other state and federal government programs. Using the government funds for both mortgage forgiveness as well as the reduction of principal will help provide long-term stability to homeowners in Nevada and in particular the Las Vegas region, which is one of the poorest performing cities in the nation.
Details of the Nevada Hardest Hit Fund
One of the key components is the creation of a mortgage modification program by the state of Nevada. The program will offer loan modifications using a combination of loan forgiveness and also loan forbearance. The goal of the modification program will be to reduce the principal on a mortgage balance to less than 115 percent of loan-to-value and to also lower housing payments to 31 percent of debt-to-income.
The principal reductions which will provide qualified homeowners in Nevada with a maximum reduction of up to $50,000 on their mortgage. The Mortgage Principal Reduction program will help various types of homeowners, including the underemployed and other so called income restricted homeowner candidates. The result should be to allow homeowners to keep occupancy and ownership of their home. Learn more on loan forgiveness.
A second main component of the Nevada hardest hit fund will be the state offering assistance to either reduce or eliminate second mortgage liens with earned forgiveness over a three-year period of time. They will also facilitate short sales and funds will be provided to assist with the process. The program will provide allowances for both transaction and appraisal fees, moving expenses, establish funds for a legal allowance for up to three months, and provide incentives for loan servicers and borrowers to do short sales. Click here to learn more on mortgage forbearance.
The primary goal of the Second Mortgage Reduction plan is to assist those borrowers who have a second lien that may be preventing or interfering with either a short sale of the home or a modification of the first mortgage that the homeowner has. This will focus mostly on the unemployed or individuals who have had a reduction in income. The removal of the second lien will help people modify their first mortgage, and thus reduce the number of Nevada foreclosure filings.
On the other hand, the Nevada Short-Sale Acceleration Program is targeted at helping those borrowers who are beginning to either start the short sale process, or those people who need to initiate a short-sale. It will assist them with relieving the mortgage burdens that they need to in order to complete the process.
How to apply for the Nevada hardest hit fund
The state will not be running the program. One of the conditions is that the federal government funds need to flow through an eligible nonprofit entity that is located in the state. In order to fulfill that criteria, the Nevada Affordable Housing Assistance Corp. will be administering the program. To learn more about the program which can help provide mortgage relief, and prevent foreclosures, contact the agency at NAHAC.org. Or contact a Nevada HUD counseling agency to inquire and apply.
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