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Travails of Fighting Foreclosed Homes in Nevada

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By : John Cutts    99 or more times read
The experiences of Ian Hirsch, manager of Fortress Credit Services, as a foreclosure prevention professional and debt adjuster in Las Vegas, illustrate the conditions of foreclosed homes and the difficulties faced by distressed homeowners and debt professionals like him in Las Vegas and in the state of Nevada.

Hirsch’s company is one of just two licensed Nevada-based debt adjustment and foreclosure prevention companies in the state. He has ten personnel and has accepted almost 300 clients troubled by the possibility of their houses becoming foreclosed homes.

Hirsch and his staff members call banks and other mortgage lenders and persuade them to modify the loans of their clients. They used all kinds of badgering and aggressive responses to sway lenders to modify loans and reduce their inventory of foreclosed homes.

Even if Hirsch does not advertise his service, he gets lots of clients because of personal referrals and recommendations. About one-third of the cases he has accepted are already solved and none of them lost their homes to foreclosures.

About half of Hirsch’s clients are already in default. The other half are still current in their payments, but the lenders refuse to modify their mortgage loans because they are still updated.

Hirsch said most of the mortgage lenders have not yet worked out how to implement Obama’s foreclosure prevention program. He said some of those he has called are not even sure about clear provisions like the 30 percent of income issue–about whether it is gross income or net income.

Aside from cases where the borrowers are not yet in default, Hirsch has also difficulties helping underwater borrowers who are not yet in default but are struggling to pay.

According to a report from data analysis company First American CoreLogic, over 234,000 houses in Nevada are underwater loans, or homes valued much less than their mortgage balances. Steve Bottfeld, a top executive of housing consultant Marketing Solutions, said most properties purchased from 2004 to 2007 in Las Vegas are now underwater.

Also, Las Vegas had 8,406 foreclosure filings in February, based on RealtyTrac’s research. The city’s foreclosure rate is 1 in every 50 housing units, 7 times the average foreclosure rate nationwide. The city’s number of foreclosed homes accounted for most of Nevada foreclosures, making Nevada among the top ten states in number of foreclosed homes.

In conclusion, Hirsch stated his contention that the number of foreclosed homes will increase and that it would take many months before mortgage lenders can create a consistent approach to mortgage loan modifications.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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