Ensuring Financial Stability: Nevada Residents Eligible for Assistance from the Hardest Hit Fund
Many homeowners have been affected by the mortgage crisis of 2007. Although the real estate market, in general, is improving, many still struggle financially to keep up with monthly payments. Las Vegas Custom Loans wants consumers to know that if you reside in Nevada, and are having difficulty meeting monthly mortgage payments, there are alternatives to default and/or foreclosure.
Prompted by President Obama’s initiatives, the Hardest Hit Fund, was established in February 2010 to provide aid to homeowners, with the primary goal of restoring financial stability to homeowners and their families. The program provides for the distribution of $7.6 billion to specific states, Nevada included, deemed to have been amongst the hardest hit nationwide, determined on the basis of unemployment rates and decline in housing prices. Nevada was the fifth state to receive funding under this initiative, receiving approximately $194 million.
In order to qualify for one of the programs, you must first determine if the servicer of your mortgage loan is a participating member of the Nevada Affordable Housing Assistance Corporation (NAHAC). A listing of participating servicers, is available through the official website for the Nevada Hardest Hit Fund.
In addition to servicer participation, you must also meet general eligibility requirements:
- you must be a U.S. Citizen or Legal U.S. Resident.
- the home must be owner occupied and the homeowner’s primary residence.
- the home must be a single family dwelling, condo/townhouse, or manufactured home.
- the unpaid principal balance on your mortgage must not exceed $417,000
- the home must not be listed for sale, and you must be either currently in default, or facing imminent default.
- you must show documented financial hardship.
- the applicant must not be in active bankruptcy, or have household liquid assets, excluding retirement funds, exceeding $10,000.
Although initial funding provided for several different assistance programs, as of 2013, two programs are available to Nevada residents under the NAHAC. The first program, the Mortgage Assistance Program (MAP), provides aide to Nevada homeowners who are in default or are facing the prospect of imminent default, either as a result of unemployment, or due to a 35% reduction in income/wages since 2008. Under the MAP program, applicants may be eligible to receive up to $1000 per month towards their first mortgage payment, including principal, interest, taxes and insurance. Assistance is available for a period of up to 9 consecutive months.
The second program is the Reinstatement Program, which is available to Nevada homeowners who have successfully completed participation in the MAP program, but still require assistance to become current in their mortgage loan. Applicants must demonstrate that they have overcome previous financial hardship such that the homeowner will be able to make future monthly mortgage payments. Additionally, the housing debt ratio must not exceed 43%. A maximum assistance amount of $12,500 is available to put towards past due payments, penalties, and late charges.
For more information on the Nevada Hardest Hit Fund,
contact Casey Moseman of Las Vegas Custom Loans at 702-271-1274.