Program Aims to Lower Repossessed Homes for Sale Numbers in Nevada

by on Repo Homes

Nevada continues to top the nation in terms of number of foreclosures and repossessed homes for sale. The state launched the Foreclosure Mediation Program in an effort to help troubled borrowers in the state. Although the initiative has been applauded by some government officials, a number of homeowners who enrolled in the program stated that it did not work for them.

Owners of foreclosed homes in Las Vegas and in other parts of the state alleged that their banks sent them documents that were difficult to understand. According to local housing experts, this is one of the issues with the program; with majority of applicants unable to understand, legal documents and terms and aid from legal practitioners are often necessary for them to interpret the paperwork involved.

Experts also stated that this has discouraged a lot of owners of foreclosed homes in Nevada from joining the program. As of December 2010, over 13,700 homeowners are said to be enrolled in the program, quite a small number considering the number of homeowners in the state currently facing foreclosure troubles. Another concern expressed by both homeowners and banks was the alleged bureaucracy that delays the completion of the process.

Meanwhile, housing analysts reported that it had been quite hard to assess whether the program is making any difference since mediations are generally considered confidential. Filings for foreclosures and repossessed homes for sale do appear on public records, but during mediation talks, parties involved are prevented from recording the negotiations. Both lenders and borrowers are allowed to take notes, though.

Despite difficulties in gauging how many owners of bank homes for sale were helped by the program, Nevada's mediation effort was considered ahead of other states. Local officials stated that efforts are being made to iron out problem areas in the initiative. They also revealed that the number of applications has increased in the past few months because of the rise of foreclosure numbers last year.

Program administrators also stated that the main aim of the program was to prevent foreclosure at the onset and prevent properties from becoming repossessed homes for sale. They also stated that the program is getting better as it goes along.