The Nevada legislature has finally decided to become concerned about the rising rate of foreclosures. Its not surprising that State republicans are against doing anything. State Senator Warren Hardy, (R) Las Vegas, said, "What obligation does the legislature have to step in and protect them? It's just investors like Wall Street." Apparently Senator Hardy is severly out of touch. He thinks that it mostly investors losing their shirts with foreclosure. I wonder how many of his constituents are in foreclosure? Unfortunately, the interim solution seems to be a bust. At a cost of $400,000 per year, the legislature is proposing to put up an 800 line so people facing foreclosure have a resource to call.
Of course, this is just a preliminary plan and there is no discussion of how to pay for it. It will be discussed more next month. -Charles
I don't think interest rates falling will help foreclosures, how can it. I am working now with a couple with equity in her home, about 50k worth of equity. She can't refinance, her husband hurt his back and Workman's comp only pays a percentage of his base salary of 40 hours. With an up coming loan reset , do you think it will go down, now that they have been late a few times.
No, the lender will see the equity and move hard on this because there is value there to get. On the other hand, I know of someone who is way ,,,wayyyyyy upside down and has not made payment in over 4 months, she is still in preforcloseure and they are give her options like crazy to make a deal. They don't want this one back. this is the reality of foreclosures....its money, no, its MONEY, moe MOney
The governor was playing games by holding summits with the banks a couple of weeks ago. We do need an attorney general fraud hotline for people involved in fraudulent transactions: whether it involved mortgage fraud, RESPA violations or fraud from investors renting out their place and not paying their mortgage. If we don't prosecute and learn from our past, this will never be prevented in the future.
I do believe a very large number of foreclosures are from speculators not prepared for a long term hold BUT there are some very sad stories going on with homeowners right now.
Nice to see you Charles & Jacqui!
Right now I am more impressed with Countrywide stepping up to modify over $6 Billion dollars of existing ARM loans to avoid foreclosure. I'm also keeping an eye on H.R. 1852 which passed in the House last month and is now in a Senate committee. If passed as written, the mortgage loan limit for Las Vegas would be high enough that over 60% of the current single family residential inventory would be eligible for FHA financing. First time home buyers would not be subject to a 3 percent down payment and "risk-based" underwriting would replace "FICO-based" underwriting.
Charles . . . thanks for keeping us informed on this topic.
Forrest