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CARSON CITY, Nev. (AP) — A program intended to help distressed Nevada homeowners stay in their homes with loan modifications has been given final approval and is underway.
Officials on Friday announced that a state-affiliated nonprofit group, Home Means Nevada, has finalized an agreement with the U.S. Department of Housing and Urban Development to buy a pool of mortgages. The nonprofit will then determine if those homeowners qualify for loan modifications.
About 450 homes will be part of the first round, said Teri Williams, spokeswoman for the Nevada Department of Business and Industry.
If a homeowner owes more than current market value, the principal balance may be reduced. For borrowers unable to qualify, they will be provided transitional assistance.
About half of the $100 million program is funded with money Nevada received in a nationwide mortgage settlement with lenders. Other money comes from federal sources, like a portion of the $194 million Nevada received four years ago as part of the federal Hardest Hit Fund — money to help states hardest hit by the Great Recession.
The program aims to stabilize property values and neighborhoods by acquiring pools of delinquent notes and refinancing the loans to current market value.
Homes targeted for the program were selected by the HUD, and there was is no application process for other homeowners who might be interested.
"HUD holds these mortgages. They pre-identified a pool," Williams said.
Homes were selected throughout Nevada, she said.
"The Nevada Home Retention Program will serve to help distressed homeowners remain in their homes, thus providing stability to our neighborhoods and communities across the state," Gov. Brian Sandoval said in a statement.
Sandoval also acknowledged U.S. Sen. Harry Reid, D-Nev., Democratic Attorney General Catherine Cortez Masto and state lawmakers for their support of the program.
Homeowners whose loans are part of the pool purchased by the program will receive notice as soon as mid-May from their current lender, informing them that their mortgages have been transferred to a new servicer, Wingspan Portfolio Advisors.
Once the notes have been officially transferred, homeowners will receive information on the loan-modification process and potential consequences, and they will be contacted by a housing counselor to begin the loan-modification qualification application.
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