Homeowners: Ready to Brave a Recession with Improved Resilience
Despite lingering fears of an oncoming recession, Las Vegas mortgage experts are urging homeowners not to fret over a housing market crisis akin to the late 2000s. The landscape today is vastly different, with mortgage providers far better equipped to weather economic challenges than they were in 2008. Andrew Leavitt, president of the Nevada Mortgage Lenders Association’s board of directors, emphasizes that homeowners have an array of options available to seek assistance if needed.
Leavitt asserts that the significant dip in housing values experienced in 2008 was primarily due to fraud, a factor not prevalent in the current market. In past U.S. recessions, housing values have typically remained resilient and stable, as homes are tangible assets that retain value even during economic downturns.
Many homeowners who lack familiarity with the mortgage industry may become alarmed upon receiving notices of foreclosure or short sale, unaware of the numerous avenues to protect their homes. Federal COVID-19 relief and flexible modifications are just some of the options available to homeowners experiencing financial hardship or uncertain employment.
For those struggling to make mortgage payments, the CARES Housing Assistance Program (CHAP) is a valuable resource, providing up to $20,000 to assist with owed payments. The funds allocated for CHAP stem from the Hardest Hit Fund, a program created in response to the 2008 financial crisis, with Las Vegas being one of the hardest-hit cities in the nation in terms of property values.
While financial hardships in mortgage payments have not seen significant increases, rising debt in other areas can impact one’s ability to manage their mortgage. Loan officer Ryan Erekson from Guild Mortgage highlights the importance of open communication with mortgage companies to find solutions tailored to individual circumstances.
Wells Fargo encourages customers to utilize the Homeowner Assistance Fund at both federal and state levels, offering substantial aid to those affected by the lasting effects of COVID-19 or who may be struggling with property insurance and related expenses.
The Nevada Homeowner Assistance Fund, initially a pandemic response initiative, has adapted to address ongoing financial hardships. Despite concerns about widespread foreclosures, the fears have not materialized, but there remains a growing need for homeowners to manage their mortgages due to reduced employment or unemployment.
Applications for assistance have seen a steady increase, prompting organizations like Chicanos Por La Causa, a nonprofit that has supported Las Vegas homeowners for over a decade, to work as intermediaries in connecting individuals with the Homeowner Assistance Fund.
The message from experts is clear: It is never too late to ask for help. Mortgage companies have dedicated hardship hotlines, and they are willing to work with homeowners seeking assistance. Open communication is key, as mortgage providers aim to support homeowners in retaining their homes and navigating financial challenges.
Amidst the uncertain economic landscape, homeowners can find solace in the knowledge that they have a network of support and resources to weather the storm. By staying informed and reaching out for assistance when needed, homeowners can navigate the complexities of the current housing market with confidence.