Archive for June 18th, 2010

Loan Mods and Las Vegas Homes

Friday, June 18th, 2010

A major credit rating agency released a report just the other day contending that many home owners that have successfully completed mortgage modifications through HAMP (Home Affordable Modification Program) will end up re-defaulting within a year. In fact, they predicted that at least two thirds would do exactly that. This is a huge number and a highly discouraging statistic. It should be pointed out that this is a prediction made by economic forecasters, which often times resemble the accuracy rate of weather forecasting, but it’s a worrisome issue nonetheless. In all likelihood, the Las Vegas real estate market will see it’s share of re-defaults due to continued sluggishness in our local economic recovery (among other factors). But at that point, at least there is a newly viable process developing that will stave-off foreclosure in many re-default cases. Las Vegas short sales through HAFA (Home Affordable Foreclosure Alternatives) are being positioned by the Treasury Department and the major banks as the next line of defense against the toxicity of full-scale bank repossession. The banks benefit from the promotion of the short sale process by saving on fees and decreasing the severity of their overall financial loss, while borrowers get the opportunity to move on with their lives more quickly and with less damage to their credit in many cases.