Mortgage loan mediation keeps many in their homes
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After completing its first full year, the Nevada foreclosure mediation program – which helps homeowners negotiate their mortgage loans with lenders – succeeded at keeping nearly half its participants in their homes.
Nearly 90 percent of those who enrolled in the program were able to hold off foreclosure, former Nevada Assembly Speaker Barbara Buckley said this week.
According to Buckley, of the nearly 6,000 mediations conducted since the program was started in September 2009, only 795 homeowners experienced a foreclosure, The Associated Press reports.
However, despite this success rate, the state still has a high percentage of its homes engaged in the foreclosure process.
Local officials say the recent economic decline has hit Las Vegas particularly hard, as many consumers have put off vacations to the once popular destination, the news source says. Las Vegas currently leads the country in unemployment and bankruptcy rates.
While the mediation program will likely continue, home prices could keep declining. University of Nevada, Las Vegas Professor Nasser Daneshvary says homes that were once valued near $300,000 are currently worth $80,000 less.
This, coupled with unchanged mortgage loan payments, will likely cause many Nevada homeowners to lose out on their home investments.
Loans News: This article was published on 1-22-2011 at 9:02 am.
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