Time after time pundits come up with their prediction of the future Las Vegas real estate market conditions based on a snapshot and that is why they keep missing. A lot is happening to impact the future of Las Vegas residential real estate market and one is the settlement by Bank of America (Countrywide) with Attorney General which will impact 11,000 Las Vegas home and condo owners, however they have to be owner occupiers.
Our mortgage partner, John who you can contact at john.lefrancois@dalusa.com has written the following for your benefit.
the fact that October 6th, 2008 Bank of America the purchaser of Countrywide Financial has reached agreement with Attorneys General and has developed a comprehensive program that will achieve affordable and sustainable mortgage payments for borrowers who financed their home with sub-prime loans or pay options mortgages.
It is estimated that 400,000 Countrywide Financial customers will be able to modify troubled mortgages with $8.4 billion in interest rate and principal reduction nation wide. In Nevada 11,400 customer will be able to modify their rate and or the principle under the negotiated program with Attorney General. Foreclosure sales will not be initiated or advanced for borrower likely to qualify until Countrywide has made an affirmative decision on the borrower eligibility.
Effective December 1st, 2008 a proactive outreach loan modification will be made to relief to eligible borrowers who are seriously delinquent or are likely to be delinquent as a result of loan feature, such as rate resets or payment recasts.
Options that may be offered for eligible customers to ensure modifications are affordable and sustainable. First year payments of principal, interest, taxes and insurance with a targeted with a debt to income ration of 34% borrowers income. Limited step rate interest rates with limit to payment shock. Modification options include, among others:
FHA refinancing under the HOPE for Homeowners Program.
- Interest rate reductions, which may be granted automatically through streamlined process;
- Principle reduction on Pay Option adjustable rates mortgages that restore lost equity for certain borrowers.
Included in this program there will be a Foreclosure Relief Program of $150 million on a nationwide basis for payment to eligible Countrywide servicing customers who suffered foreclosure or are currently at risk of foreclosure. It is also agreed to fund up to $70 million for financial assistance from the transition from homeownership.
Related web-site links: getting the best deal for a Las Vegas home or condo, Las Vegas residential real estate market news, Las Vegas real estate market statistics report, Las Vegas condominiums and homes for sale
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