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Nov. 06, 2008
Copyright © Las Vegas Review-Journal

FORECLOSURE CRISIS: LV officials want aid, outreach

Prevention efforts lacking, City Council members say

By ALAN CHOATE
REVIEW-JOURNAL
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GETTING HELP
The following are mortgage counseling agencies listed as approved by the U.S. Department of Housing and Urban Development:

• Consumer Credit Counseling Service of Southern Nevada
(702) 364-0344
www.cccsnevada.org

• ACORN Housing
(702) 384-3022
www.acornhousing.org

• Community Services of Nevada
(702) 307-1710

• Neighborhood Assistance Corp. of America
(702) 562-4382
www.naca.com

• Nevada Legal Services
(702) 386-0404

• Women's Development Center
(702) 796-7770
www.wdclv.org

• NID-HCA of Las Vegas
(702) 220-6996

Two years ago, an 86-year-old woman got a 40-year, $274,000 mortgage with an introductory rate of 1 percent. Her monthly payment was a little more than $500 -- but her income consists of only an $830 monthly Social Security check.

She recently got a three-day notice of eviction on her house, which now has been foreclosed upon, Michele Johnson of the Consumer Credit Counseling Service told the Las Vegas City Council on Wednesday.


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    • And it's people like that woman who need to be reached if the mushrooming foreclosure crisis is to be addressed, officials said, pointing to a set of people who are not being served by the housing measures put in place so far.

    "What about the poor people who've lost their homes already?" asked Mayor Pro Tem Gary Reese.

    "It is a huge problem," Johnson said. "The problems that the valley is facing are so overwhelming, given the resources available."

    Thousands of homes are in foreclosure or preforeclosure across Southern Nevada. State and local leaders touted some new legislation recently aimed at repopulating and redeveloping foreclosed properties, but council members reiterated their frustration Wednesday that not enough is being done to keep people from being foreclosed upon in the first place.

    "That's the fallacy, and that's the weakness," said Mayor Oscar Goodman. "I think they've done it inside out and upside down and backwards."

    A spokesman for Senate Majority Leader Harry Reid, D-Nev., said that aid for staving off foreclosures is in the works.

    "This was discussed at length at the event we held a couple of weeks ago in Las Vegas," said Jon Summers. "We are going to try to include foreclosure prevention measures in the next economic recovery package we will work on during the lame duck session, which starts the week of Nov. 17."

    In the meantime, people in danger of losing their homes should not bury their heads in the sand, Johnson said.

    "A foreclosure is not a death sentence," she said. "There's a right way and a wrong way to go through a foreclosure."

    The right way is to stay in touch with the lender and get help from a HUD-approved credit counseling service, she said.

    Also, maintain the property, list it for sale and trim other expenses and debt.

    Often the biggest step people have to take is to admit that they cannot afford the house, Johnson said.

    "It's unrealistic to expect that everybody in a home who can't afford their payment will be able to save their home," she said. It's a reality check when people realize "the only way it was affordable to begin with was through a creative loan product."

    The local branch of the Consumer Credit Counseling Service is working with 1,200 people a month, a 70 percent increase over last year.

    Workers there were able to get the senior citizen with a three-day eviction notice more time to move out.

    "They're not all low- to moderate-income people," Johnson said. "Income isn't a qualifier for whether somebody is able to afford their mortgage payment or not."

    The goal is to get people to focus on their financial situation and find alternatives to simply walking away from properties.

    "The only way we can do that is by reaching them sooner," she said. "That will eliminate senior citizens calling and saying, 'I have three days to move.'"

    Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.

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    perry wrote on March 29, 2009 11:51 AM: boy people already blaming obama and it only november these last 8 year it been BUSHNATION no regulation it what cause this problem


    Whatsup wrote on November 10, 2008 02:15 PM: And who the H E double hockey sticks would give a 86 year old a 40 year mortgage? She would be 126 by the time it was paid for.


    Whatsup wrote on November 07, 2008 02:14 PM: Two years ago, an 86-year-old woman got a 40-year, $274,000 mortgage with an introductory rate of 1 percent. Her monthly payment was a little more than $500 -- but her income consists of only an $830 monthly Social Security check.

    The woman should have her head examined for thinking she could afford that house and the lender who made the loan should be shot. It's idiots like that woman and the lender that got us all in this fine mess.


    Vegas Vic wrote on November 06, 2008 08:32 PM: So when someone can't make the payments on a house they couldn't have afforded without "creative financing" then it's up to the taxpayers to bail them out? NO. Forget about bailing these people out and allow the market to reset to more realistic levels than we've had in the past 3 years. I don't care what their sob story is. The bottom line is that they bought a house they could NEVER have afforded and now it's all coming back to bite them.


    jk wrote on November 06, 2008 04:45 PM: If the lender's had half a brain they would bulldoze every house they foreclosed on, if nothing else it will help balance supply and demand, which will help to stem the price decline. On the other hand, the lenders are the idiots that gave mortgages to people w/o verifying their assets and income, so be it if they lose a few bucks.


    Joe Bama wrote on November 06, 2008 10:28 AM: This woman will end up being the poster child for Vegas real estate. And will probably get a bigger house than the one she got thrown out of courtesy of us


    Miguel wrote on November 06, 2008 10:18 AM: Hey this Obamanation is great, if you can't afford your house Uncle Sam picks up the bill. I think everyone deserves a free house as big as they want.


    CAS127 wrote on November 06, 2008 07:25 AM: "They're not all low- to moderate-income people,"

    Hey, Gary Reese, put your money where your mouth is (instead of our money), and *you* fund the "dollar millionaires" that bought houses they never could really afford.


    CAS127 wrote on November 06, 2008 07:22 AM: "What about the poor people who've lost their homes already?" asked Mayor Pro Tem Gary Reese.

    What about the taxpayers who sacrifice 33% of their lives to fund the faux generosity of people like Gary Reese?


    angela hill wrote on November 06, 2008 07:01 AM: Totally agree with peter and bob this country is now doomed with communism god please help us america will no longer stand


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