Las Vegas NowMortgage Lender Takes On Underwater Homeowners

Mortgage Lender Takes On Underwater Homeowners

The number of foreclosed homes in Las Vegas nearly tripled from 2007 to 2008. But there is more to the foreclosure crises than just people losing their homes. Responsible homeowners who are making their payments on time are also suffering and underwater.

People who are upside down on their mortgages but still pay the bill on time are now hurting.

Lee Bachmann moved to Las Vegas more than 40 years ago. She's proud of the place she calls home, "I put in a new washing machine, a new microwave, garbage disposal. It's just me and I'm immaculate."

Even in the recent foreclosure mess, she has never missed a payment and is always on time. But she is what loan officer Bruce Singer, with Stone Canyon Financial, calls an underwater homeowner, "Underwater means you owe more than what the house is worth. So if the house is worth $200,000, and you owe $250,000, that means you're underwater on your mortgage."

Banks are not using the bailout money to help people like Bachmann. Singer says banks are hoarding the money, "They put their self in this situation. They needed some of the money to pump up their assets so they can borrow as well."

He wrote to Nevada lawmakers last month, "I decided I'd write the Congress people to see if there is anything that a person that's in the business can do -- maybe give solutions because it just seems like anything they are coming up with is not."

Bachman wonders why there is no help for homeowners like herself.

"It doesn't make any sense to me. They are holding us hostage is how I look at it," she said. "I am not going to be late with my payment and ruin my excellent credit in order for the bank to help me out."

As much as Singer tries to help homeowners, there is not much he can offer other than encouraging his clients to keep paying their mortgage on time and wait and see if the banks start helping people.

Singer has yet to get a response from the Nevada delegation in Washington. He emailed each of them, offering some insight on the underwater homeowners, but still waiting to hear back from them.