One out of every 165 mortgages in Nevada faces foreclosure. Since August 2006 foreclosures have increased more than 200 percent. Boulder City, with the third-highest foreclosure rate in the Silver State, is being hit especially hard.
Foreclosures affect everyone. For example, foreclosed homes drive down property values of other homes in their neighborhoods. Some experts predict that nationwide, those homes that neighbor foreclosed houses could decline in value by approximately $200 billion. In addition to the financial loss other homeowners incur, lower home values also reduce the amount of property taxes local governments collect, which fund education, police, and roads, to name a few.
Nevadans who rent homes are also being hit hard by foreclosures. Often these people receive little notice - sometimes just a few days - before they are forced to move because the home they are renting is being foreclosed. These victims frequently lose their security deposits and rarely have enough money in savings for another security deposit.
As the Senate Majority Leader I am leading Congress in taking action on this crisis. We have already passed legislation that makes the Federal Housing Administration program more borrower-friendly and flexible, and therefore will provide borrowers a better option to refinance out of their current subprime loan into FHA-backed loans.
In Nevada, my office began sponsoring Mobile Resource Centers last year. These centers create a “one stop shopping” environment where people in need can get help from State, local, and federal agencies along with nonprofit organizations, mortgage lenders and credit counselors who provide information and counseling to the people who need it the most.
If you are in danger of foreclosure, please call Consumer Credit Counseling at 1-800-451-4505.
Contact Harry Reid at http://reid.senate.gov/
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