Nevada Hardest Hit Fund
Because it’s a State with one of the highest foreclosure rates in the country, Nevada has been awarded over $150 million by the U.S. Treasury. These funds are targeted at assisting qualified homeowners avoid foreclosure. The funds will be applied through the Nevada Housing Division and will be overseen by a nonprofit Corporation: Nevada Affordable Housing Assistance Corporation (NAHAC) who has created four programs to assist Homeowners with Mortgage Assistance, Principal Reductions, and short Sale Acceleration with participating Servicers.
Programs Available:
Mortgage Assistance Program (MAP)
The Mortgage Assistance Program is designed to help underemployed and unemployed homeowners by providing temporary financial assistance.
The program’s financial assistance will be available to the homeowner for up to 9 months and will assist homeowners by paying no more than $1,000 of the borrower’s 1st lien holder’s mortgage payment. In order to take advantage of the program, homeowners will still be responsible for a partial contribution of $75 or more towards the total monthly payment and must meet the following eligibility Criteria:
- Legal U.S. Resident
- Owner occupied property
- Home must be the owners only property
- Income below 150% of AMI as published by HUD
- Borrower facing imminent default
- Financial hardship must be due to involuntary underemployment or unemployment
- Mortgage balance may not be over $729,750
Borrower will be required to complete a Hardship Affidavit. After acceptance into the program, the borrower will also be required to own and occupy the property for 3 years following the initiation date of assistance.
Principal Reduction Program
Homeowners may receive a principal reduction up to $100,000 from participating services. After qualifying, the Nevada’s Hardest Hit Fund will apply a maximum contribution of $50,000 which will be matched by the Servicer. To take advantage of the Principal Reduction Program, homeowners must meet the following requirements:
- Legal U.S. Resident
- Owner occupied property
- Home must be the owners only property
- Income below 150% of AMI as published by HUD
- Current principal Loan-to-value must exceed 115%
- Mortgage payment must be reduced to 43% of the homeowner’s gross income after the reduction is implemented
- Mortgage balance may not be over $729,750
Borrower will be required to complete a Hardship Affidavit. After acceptance into the program, the borrower will also be required to own and occupy the property for 3 years following the initiation date of assistance.
Second Mortgage Reduction Plan
This program essentially mirrors the Principle Reduction Plan with the following exceptions:
- Servicer to contribute 60%, and Nevada Hardest Hit Program to contribute 40% towards the reduction which is expected to extinguish the 2nd lien.
- Restricted to homeowners who have a 2nd lien interfering with a short sale/refinance/modification of the 1st mortgage.
- Must not have more than the 1st mortgage and the 2nd lien against the property.
- Borrower must be facing imminent default.
Short Sale Acceleration Program
Under this program, homeowners will receive financial assistance which may be used towards closing costs, Legal fees associated with their short sale, servicer incentives, or relocation costs. The maximum financial assistance a homeowner may receive is $8,025. The funds may not be applied toward rental assistance if the homeowner chooses to leave the State. To qualify for the program, homeowners must meet the following eligibility criteria:
- Legal U.S. Resident
- Owner occupied property
- Home must be the owners only property
- Lender must have issued a short sale approval letter
- Applicants must apply prior to close of escrow
- Can have only one mortgage
- Must complete a Hardship Affidavit.
Should you have any questions or need further information, please don’t hesitate to contact me, (775) 220-1630 or the Nevada Hardest Hit Fund Directly.
Or visit my website at www.SellingHomesinReno.com
Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5953
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
Legal disclaimer: I am not an attorney, tax professional, modification specialist or credit counselor. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal, tax, or credit advice. You should not act upon this or any information without first seeking independent tax and/or legal counsel.
Source of Information: Nevada Hardest hit Fund
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