2012, there were more than 52,000 severely delinquent and underwater homeowners
in Nevada headed toward foreclosure. Our housing recovery is fragile and
affected by this “shadow inventory.” It remains an impediment to true
recovery in our State. Attached is a white paper on a program the State
is proposing to help tackle this problem to allow the housing market to
accelerate a true recovery and restore normal market forces while finding ways
to maintain and encourage owner-occupied homeownership.
partnership with HUD and the U.S. Treasury, the Nevada Home Retention Program
gives pre-identified homeowners an opportunity to refinance their delinquent
underwater mortgage at the current market value of the home, giving them a
fresh start to begin building equity. Thus, the homeowner is better positioned
to maintain their property and invest in home improvement, thereby stabilizing
the value of the home and surrounding properties.
those homeowners that are unable or unwilling to participate in the program or
in cases where the home is abandoned, a timely foreclosure will be initiated.
Foreclosed properties will only be resold to qualified owner-occupants and
first time homebuyers.
The program’s primary objective is to
encourage owner-occupied homeownership and retention.
This is not a volunteer program. To
qualify for this program, the homeowner’s loan must be among the pool of loans
acquired by the State from the FHA or other program partners. Homeowners will
be notified and invited to refinance their current mortgage.
It is anticipated that a number of
homeowners will not qualify to refinance within the program. Some of the
mortgages and homes in the pool may already be vacant or abandoned. In
those cases, the goal is to move quickly to get a qualified owner-occupant into
the home as soon as possible.
A nonprofit entity would be established
to administer this program on behalf of the state with formal oversight by
federal and state officials and an independent board of directors.
The nonprofit organization administering
the Nevada Home Retention Program will help stimulate economic activity by
contracting with certified housing counselors, real estate professionals,
construction companies and other professionals to fully implement the program.
The Department of Business and Industry
continues to work with key stakeholders to finalize details of the program and
will make information concerning the program available as it develops.
About the Department of Business &
The Nevada Department
of Business & Industry is a cabinet level agency in Nevada State
government. The mission of the Department is to protect consumers and promote
commerce. Our objective is to encourage and promote business
development and growth, and to ensure the legal operation of business in order
to protect consumers. These objectives are carried out through
maintaining a fair and competitive regulatory environment and eliminating
unnecessary and burdensome regulations when possible. In addition, Business and
Industry is committed to providing leadership for small businesses in the areas
of advocacy, navigating state government, access to capital and training.