President Obama Lays Out New Plan to Help Struggling Homeowners - 8 News NOW

President Obama Lays Out New Plan to Help Struggling Homeowners

Posted: Updated:
  • HousingMore>>

  • Nevada home sales decline as prices rise

    Nevada home sales decline as prices rise

    Thursday, April 24 2014 12:02 AM EDT2014-04-24 04:02:06 GMT
    LAS VEGAS -- Nevada was one of only six states in March that experienced a decline in residential sales compared to a year ago, RealtyTrac reported Wednesday night.More>>
    LAS VEGAS -- Nevada was one of only six states in March that experienced a decline in residential sales compared to a year ago, RealtyTrac reported Wednesday night.More>>
  • Las Vegas still leads nation in 'seriously underwater- homes

    Las Vegas still leads nation in 'seriously underwater- homes

    Thursday, April 17 2014 12:01 AM EDT2014-04-17 04:01:59 GMT
    LAS VEGAS -- Despite rising home prices, Las Vegas still had the nation's highest percentage of residential properties "seriously underwater" in the first quarter of the year among major metropolitan areasMore>>
    Despite rising home prices, Las Vegas still had the nation's highest percentage of residential properties "seriously underwater" in the first quarter of the year among major metropolitan areas and Nevada was worst among the states, RealtyTrac reported Wednesday night.More>>
  • Nevada Foreclosures Continue Sharp Decline From Year Ago

    Nevada Foreclosures Continue Sharp Decline From Year Ago

    Thursday, April 10 2014 12:01 AM EDT2014-04-10 04:01:30 GMT
    LAS VEGAS -- Nevada had the nation's third highest housing foreclosure rate in the first quarter of 2014 but its foreclosure filings dropped 48.3 percent from the same period last year, RealtyTrac reportedMore>>
    Nevada had the nation's third highest housing foreclosure rate in the first quarter of 2014 but its foreclosure filings dropped 48.3 percent from the same period last year, RealtyTrac reported Wednesday night.More>>

LAS VEGAS --  President Obama laid out a plan Wednesday to help underwater homeowners. But the help may be too little to help a majority of Nevadans.

The federal plan could save a homeowner thousands of dollars a year if they didn't buy their home during the housing peak. But many Las Vegas homeowners who've seen housing values cut in half, will not be eligible for the help.

The majority of homeowners who have private lenders have loans secured by either Fannie Mae or Freddie Mac. The president's idea is to make them eligible to refinance their home at a 30-year, 4 1/4 percent rate. It's a program previously eligible only to those who had direct government loans.

The White House estimates it would save the average eligible homeowner $3,000 a year. However, deeply underwater Nevadans will have to hope Congress requires lending banks to write down home values.

 

"Lenders are doing their part. Those that made these loans ought to take responsibility to make sure that they're taking cost-effective steps to make sure that those homeowners can stay in their homes. Part of doing that means that they should be writing down the principal on those loans," HUD Secretary Shaun Donovan said.

Here is a Fact Sheet on President Obama's Plan

Clark County's average home value is down half since the 2008 peak. The president's plan faces two obstacles in order to help Nevadans considered deeply underwater. It needs to pass the Republican controlled House of Representatives. In addition, Congress would need to write a law that compels private lending banks to lower home values.

To find out if you are eligible for the plan -- take the amount your home is worth today and multiply it by 1.4. If that number is short of what you owe, then you are not eligible.

 

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KLAS. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.