In spite of the fact that housing has been “saved”, Nevada has cooked up another housing “rescue” program: [Thanks L!]
LAS VEGAS (AP) — Amid a buffet of government-run mortgage relief programs that many struggling Nevada residents say they’ve heard nothing about, Bruce Breslow thinks he finally has a program that fatigued homeowners will pay attention to.
The proposed program would have the state create a $150 million nonprofit to buy up distressed mortgages en masse and refinance them. The newly appointed director of Nevada’s Department of Business and Industry thinks it could help chip away at the tens of thousands of mortgages in Nevada that are severely delinquent.
“I think the ‘shadow inventory’ is the main thing that’s keeping homebuilders from moving into Nevada,” said Breslow, whose department typically regulates business and administers bond programs to encourage business growth. “The threat of 52,000 homes marching toward foreclosure keeps it unstable.”
What those “fatigued homeowners” should pay attention to is how many homeowners Breslow thinks this program can help:
Breslow said the $150 million pot of money can only go so far. That might help 700 or 800 homes, until people whose mortgage the nonprofit buys can pay back into the fund and replenish it, allowing the program to bring in new underwater homes.
A bailout for less than 2% of distressed homeowners is not likely to stop those 51,000 foreclosures from marching.