Plan combined with foreclosure prevention funding in Omnibus could help provide immediate relief to Nevada families

March 4, 2009

Washington, D.C. – Nevada Senator Harry Reid today made the following statement on the release of guidelines for President Obama’s “Making Home Affordable” initiative.  This new program is designed to help millions of Americans refinance or modify their mortgages, making it easier for them to stay in their homes.

“Up until today, help seemed out of reach for responsible home owners whose mortgages suddenly became unaffordable.  More often than not, you had to be in default or on the brink of foreclosure to get any assistance or to renegotiate your loan.  Furthermore, home owners who owed more than their home is now worth felt trapped and ineligible for assistance.  All that has changed under this plan.  Now, homeowners who can no longer afford their mortgage, or whose mortgages will become unaffordable very soon, are eligible to participate in the Administration’s plan.  If the mortgage payment consumes or is about to consume more than 31% of their monthly income, a homeowner can now contact their lender or mortgage servicer about renegotiating the terms of their loan.

“This, combined with the nearly $1 million of additional funds I’m working to get in the omnibus, and the nearly $10 billion for housing programs and neighborhood stabilization secured in the economic recovery bill, is providing immediate assistance to families trying to keep their homes.

“As a point of caution to home owners, with this news comes the possibility of an increase in scams.  If you need assistance, please contact your bank directly and be cautious of potential scam artists who may contact you.”