Can this work for you?

It depends. You need to be current on your mortgage to get a Refi and behind on it to get a Modification. Confusing? Yes. Hopeless? No. This is the first sign of hope I have seen for any of the government alphabet soup programs. Now you must see if you qualify for either and if you do you must decide if you want to pursue that option.

The plane truth is that a refinance will not solve the major problem for most of the homeowners in Southern Nevada of being upside down on their mortgage. So what is your best solution?

The best solution for you may be a modification or a refinance but it could be two options you probably haven’t heard about. How about an assignment of debt or a short sale/assignment combo plan. One of these options may solve you problem of being upside down in you home and in many cases you will not have an adverse effect upon your credit.

As a homeowner you may have more options than you think. Even if you are considering vacating your home you may be able to receive some money you may not be aware of. Cash for keys and a “Deed In Lieu of Foreclosure” may be a better option than just allowing foreclosure to happen. There is also another way to benefit from the home you own if you are not living in it…Please call for an appointment and we can help you choose the best option for you.

Following tremendous promotion from the Governors office and extensive coverage from local television “Home Means Nevada” was held March 9th and 10th. The intent was to assist homeowners to (quoting from the well circulated flyer) –lower your mortgage payment, -reduce your loan balance and –reduce or eliminate second mortgages. In short, there will be the possibility that an upside-down homeowners attending this event could receive a meaningful loan modification.

The bank representatives were there, the pro-bono attorneys were there as were the HUD approved counselors. What was not there was any meaningful resolution of the upside-down problem facing so many homeowners…

It is yet another case of well intentioned government leaders attempting to solve problems they cannot control. Local television and radio stations once again inflated the hopes of flustered homeowners by making false statements and overselling the reach and ability of the programs being offered. Many upside-down homeowners showed up with all of the documents they were told to bring only to find that principal reductions they were told would be made were not possible form them.

The promise of “on site” housing counselors and bank representatives made by the Governors office was kept. Homeowners hopes of getting a meaningful modification promoted by both KLAS, local channel 8 and KTNV, local channel 13 was not. The local media needs to get real. Last fall KLAS created a certain panic among homeowners that they may not actually own their home and now they promote an event with claims of meaningful principal reduction that did not deliver.

I took an exit survey of 196 people leaving the event and asked each of them two questions. Question #1 was: was the event “very helpful”, “somewhat helpful” or “not helpful at all” of which twenty seven (13.78%) said the event was “very helpful” forty-one (20.92%) said the event was “somewhat helpful” and 128 (65.31%) said it was not helpful at all. These results do not include countless attendees that said they had been there for hours waiting and had given up for various reasons. Of those that said the event was tremendously helpful most have a promise of an appointment to discuss a modification in the future or felt they learned something of benefit but NONE OF THEM SAID THEY WERE ABLE TO GET A MODIFICATION ON THE SPOT.

Where is the disconnect? My firm belief is that two factors are responsible. First, the media does not understand the real facts and strives for headlines such as “new robo-signing settlement offers principal reduction to homeowners”. And second, the government believes they can solve problems with more programs that do not deliver. Governor Sandoval is to be commended for the effort and no doubt a few homeowners may be helped; but, reality is that the vast majority of those attending were frustrated and resentful. What is the source of this frustration? False hope.

The press releases from government agencies and elected officials creates a flicker of hope for those desperate for a solution to their major financial problem. The the local media fans the flicker into a fire by overstating the likelihood of positive outcomes. Homeowners flock like moths to a flame with the hope that something new will finally work to solve their problem.

It is time for the government agencies, the media and the local homeowners to get back to reality.

Reality really sucks but it is time we look at real facts.

Fact #1. Decisions about modifications of principal are not made by the banks that service the loans. For principal reduction to occur the entity that owns the “promissory note” must approve the reduction. That is highly unlikely.

Fact # 2. The promise of money from the robo-signing and illegal foreclosure bank settlements totaling in the billions will actually help a very small percentage of homeowners reduce their principal. Why not tell the entire story? This settlement offers ome help for a very few.

Fact #3. Upside down homeowners continue to search for a good solution and most don’t have a “good” solution, but rather, the least bad solution. For many a short sale, selling their home subject to existing financing or allowing a foreclosure to occur are the only outcomes and none of them is perfect.

How can we make progress towards some resolution of our current problems?

The media can report rather than sensationalize, government agencies can use disclaimers within their press releases to set realistic expectation. Loose the hype and pandering to you constituents and let homeowners know that the current programs will not help most of them.

Individual homeowners can learn about the real options available and pursue the “best worst option to their upside-down problem.” Placing blame is not an effective tool to resolve the problem. Lets work towards solutions and get past the anger and resentment. Recognize that your best solution may be your least worst solution.

I would encourage your to please share your thoughts and experiences with us in the comments section.

I can be reached at 702-421-8600 or, if you are an upside down homeowner and would like to view a video I made especially for you called “Your Have at Least Five Options”, then Click the Send Me The Video button below.

From there you will see a form, if you leave me your first name and email I will sent you the link to the video.

Thanks, and I look forward to helping you.

Stan.