KLAS-TV Channel 8 News Las VegasMortgage Companies Freezing Adjustable Rate Loans
Finally, not just promises, but real help for homeowners. Eyewitness News has learned some banks are freezing some adjustable rate mortgages helping keep payments down, while the economy rebounds. Rather than putting up another foreclosure sign, some banks are stepping in.
One valley homeowner received a letter in the mail just a few weeks ago from his mortgage company telling him they were freezing his interest rate for five years. The homeowner never missed a payment and never asked for help.
Mortgage Manager Michael Rodriguez with Bank of Las Vegas says it's a move that might become more common, "Lenders are trying to move into a direction where they are trying to mitigate some of the foreclosures."
Rodriguez says banks are opening the lines of communication, giving homeowners viable options to stay in their homes, rather than walk away.
Bill Uffelman, President of the Nevada Banker's Association, says in many cases it's a win-win situation. For this homeowner, it's five years of peace of mind.
"He's eliminated that risk and he knows what his mortgage payment is for the next five years and it's a pretty good deal," said Uffelman.
But Rodriguez says while it's great to see banks making the first move, you can't wait for them, "You have to be proactive. You have to make your circumstances known to people that can help get you out of the situation you are in."
Mortgage lenders say to make sure you are working with your mortgage company rather than a loan modification company that could charge you for their services. Be sure to ask questions to make sure there are not any catches.
