Las Vegas NowHelp On The Way for Homeowners

Help On The Way for Homeowners

The new initiative called Project Lifeline involves six of the nation's largest financial institutions, which hold about half of the nation's mortgages.

Here's how it works -- the lenders will contact homeowners who are 90 days or more overdue on their mortgage payments. The borrowers will have the chance to put the foreclosure process on hold for 30 days. During that time, the lenders will try and work out a way to make the mortgage more affordable.

Treasury Secretary Henry Paulson says he knows the program won't be able to help everyone in need, but says it's a step in the right direction. "No program can bring every struggling homeowner into the counseling and evaluation process and we cannot help those who chose not to honor their obligations. But project lifeline has the potential to offer new solutions to responsible, able homeowners who want to keep their homes."

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As the rest of the nation gets foreclosure help, here in Nevada -- the foreclosure capital of the country -- a lifeline is in dire need.

Though it is believed this 30-day extension could help houses and homeowners but if the banks and lenders don't change their ways, the inevitable will still happen.

Michele Johnson helps run the Consumer Credit Counselors. She said Nevada will continue to fare worse, because our home prices have dropped so much.

She says the extension will not help because people were given loans when prices were high and now they cannot make up the difference because the market has tanked. Johnson calls Project Lifeline nothing more than P.R. from the lenders and lip service from Washington.

"If our market doesn't recover and the consumer still owes more on that property than the value, it is only putting off the inevitable," said Johnson.

Johnson says those facing foreclosure, especially in Nevada, need to think more about relocation and transition into a rental or new home. Even with all the new moratoriums and freezes, stopping foreclosure is very difficult.

What she really wants to see is a change from the lenders. Johnson hopes the foreclosure fallout will force them to rethink working with homeowners and trying to meet them halfway, instead of simply putting off the inevitable.

People do need to prepare themselves for the reality of foreclosure. But there is help for those in need. Senate Majority Leader Harry Reid has put together another mobile resource center for homeowners facing foreclosure.

"This is the American dream to own a home. It's American nightmare to lose a home," he said. At the Mobile Resource Center, homeowners can get information about how to keep from losing their home. It'll be at Cashman Center on Feb. 18 from 10 a.m. to 4 p.m.