Nevada to Receive $102 million for More Loan Mods from Feds

The Obama Administration signed off on state plans to use $1.5bn in foreclosure-prevention funding for states hardest-hit by home price declines.

Nevada, which receives $102.8m, will create a modification program using a combination of principal forgiveness and forbearance with the goal of reducing principal to a less than 115% loan-to-value ratio, and lowering payments to within 31% of a borrower’s debt-to-income ratio. The state will also offer aid to reduce or eliminate second liens with earned forgiveness over a three-year term. Nevada will grant aid for appraisal and transaction fees and moving fees, as well as a legal allowance for up to three months, for borrowers and servicers that pursue short sales.

Published by Stout Law Firm

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