Congresswoman Dina Titus of Nevada's Third District applauded the Obama administration's approval of Nevada's state plan to use $102.8 million for foreclosure prevention. Titus, whose office was one of the first in the country to help homeowners fight foreclosures on an individual basis, has long called on the administration to do more for states such as Nevada that have been hit the hardest by the foreclosure crisis.
"The administration's approval of this plan is a critical step forward that will make much-needed funds available to help families stay in their homes. As ground zero for the foreclosure crisis, District Three has been particularly hard hit and in need of these additional resources," Congresswoman Titus said. "I am pleased that the Nevada plan incorporates provisions that I recommended to best address this crisis that has devastated our community. Using these funds for mortgage forgiveness and the reduction of principal will help provide short-term assistance and long-term stability. While these funds will make an impact here in Nevada, I will continue my efforts to fight on behalf of homeowners who have been ignored or taken advantage of by the banks that have contributed to this housing crisis. Every day my office receives calls from families in District Three who are scared of losing their home. It is critical that the state moves swiftly to implement this important plan and put these funds to work. With too many families at risk of losing their home, we don't have a moment to lose."
Under the Nevada plan approved by the Obama administration, the state will create a mortgage modification program using a combination of forgiveness and forbearance with the goal of reducing principal to less than 115 percent of loan-to-value and lowering payments to 31 percent of debt-to-income. The state will also offer assistance to reduce and eliminate second liens with earned forgiveness over a three-year term. Additionally, the state will provide allowances for appraisal and transaction fees, moving fees, a legal allowance for up to three months, and a combination of incentives for borrowers and services to facilitate short sales.