Carson City, NV -
May 02, 2014Governor
Brian Sandoval, in conjunction with the Department of Business and Industry,
today announced the State has kicked-off the Nevada Home Retention
Program. The state-affiliated nonprofit organization, Home Means Nevada,
has finalized an agreement with the U.S. Department of Housing and Urban
Development (HUD) to purchase a pool of mortgages to launch the State of
Nevada’s homeowner assistance program.
Funds
for the program come from the National Mortgage Settlement Agreement brokered
by the Nevada Attorney General’s Office and approved for use by the 77th
Nevada Legislature.
“Nevada was one of the hardest hit states
during the recession, and as we start to see significant signs of recovery,
many hard working Nevadans still face the possibility of losing their homes,”
said Governor Brian Sandoval. “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. I would like to thank Senator Harry Reid, Attorney
General Catherine Cortez Masto and the Legislature for their role in making
this program possible.”
The
program aims to stabilize property values and preserve neighborhoods by acquiring
pools of delinquent notes and refinancing the loans to current market
value. If the borrower owes more on the home than the current market
value, the principal balance would be reduced, providing the homeowner an
opportunity to begin building equity. For those borrowers that are unable
to qualify, transition assistance and support will be offered.
“This Administration is committed to helping
families remain in their homes as it contributes to more stable neighborhoods
and stronger communities,” said Federal Housing Administration (FHA)
Commissioner and Assistant Secretary for Housing, Carol Galante. “We support the Nevada Home Retention
Program’s proactive approach to assisting homeowners across the state.”
U.S.
Senator Harry Reid, who helped facilitate the interaction between HUD and the
State added, “I am pleased that the State
of Nevada and the Department of Housing and Urban Development have been able to
resolve some of the issues with the program to date and find an innovative way
to help Nevada homeowners. I’ve helped Nevada receive $194 million from
the federal government through the Hardest Hit Fund and a portion of this money
combined with the settlement money will be used to help underwater homeowners.
I am committed to doing everything I can to help Nevadans stay in their homes.”
Homeowners
whose loans are part of the mortgage pool purchased by the program can expect
to receive communication from their current loan servicer informing them of the
transfer to a new servicer as soon as mid-May. Wingspan Portfolio
Advisors will act as the new servicer for all loans acquired by the Nevada Home
Retention Program. Once the notes have been officially transferred,
homeowners will receive official correspondence in a golden envelope from the
program, informing them of their potential eligibility for a loan modification
and outlining the next steps. Borrowers will also be contacted by the
Financial Guidance Center, a HUD certified housing counseling agency, to begin
the loan modification qualification process.
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