Hardest Hit Funds
Since Nevada was one of the hardest hit housing areas, Nevada was provided about $194 million dollars to assist homeowners in distress. Nevada’s Hardest Hit Funds has offered several different programs to help high-risk Nevada homeowners escape default and foreclosure.
Mortgage Assistance Program
- This program provides financial assistance, for 9-12 months, for eligible Nevadan homeowners who are unemployed or underemployed. Underemployed means any person who has had their income drop by 10% in the last 5 years. This financial assistance is capped at $1,000/month.
- This is for homeowners who have fallen behind on their payments temporarily. Reinstatement brings the homeowner current on their payments. Reinstatement is capped at $12,500.
Principal Reduction Program
- You must be under water. This program attempts to work with Lenders to reduce eligible homeowner’s principal balance by up to $100,000. There is no income limit on this program, so even if you are a high income earner, you are still eligible to participate in this program. Your mortgage balance must be below $417,000.
Principal Curtailment Program
- You must be under water. This is to be done in conjunction with the HARP 2.0 loan refinance program. You will receive $50,000 if you qualify under this program and you must refi. There is no income limit on this program, so even if you are a high income earner, you are still eligible to participate in this program. Your mortgage balance must be below $417,000 and your loan must have originated before May 31, 2009.
All programs require homeowners to have loan balances of $417,000 or less on their first mortgage. If your first mortgage exceeds $417,000, you cannot participate in any of the Hardest Hit Funds Programs. However, please contact our office for further options. Furthermore, the Hardest Hit Funds Programs are only available on owner occupied homes and not investment properties. You can also be current on your mortgage and you do not have to be delinquent since some of the programs require you to be current to qualify. If it is a Fannie Mae or Freddie Mac loan, the loan must have originated before May 31, 2009.
These programs are at no cost to the homeowner if the homeowner decides to do it on their own, but not all homeowners qualify. At Van and Associates Law Firm, we may have other programs that may end in the same result if you do not qualify for any of these programs.
Some homeowners feel more at ease hiring our firm to assist them with filling out and reviewing their paperwork for completeness and accuracy prior to submitting it to the Hardest Hit Funds for approval. In addition, should you hire our firm; we will assist you in drafting your hardship letter to ensure that it includes all the hardships that you may be incurring. We will make sure that all documentation is submitted and we will follow up with the Nevada Hardest Hit Funds counselors to determine the progress of your file. Similar to doing your own taxes, sometimes people feel more comfortable hiring a professional who has the knowledge and the know how to help them.
Please feel free to contact us today so that we may discuss the options that are available to you.
Van and Associates Law Firm at 702-529-1011