Las Vegas NowLas Vegas Locals Hope for Mortgage Relief

Las Vegas Locals Hope for Mortgage Relief

Nevada has been among the hardest hit states in the economic crisis and has been leading the nation in foreclosures for more than a year. In January alone, more than 3,200 homes were foreclosed on. Many struggling homeowners in Las Vegas wonder if President Barack Obama's proposed plan to help homeowners will help them avoid the same fate.

Unlike the first bank bailout plan that failed to reach the homeowners who needed it most, local lenders say Obama's plan sounds like a promising start to resolving the foreclosure crisis.

Comment on whether you think Obama's plan will work.

"There's no magic pill, but you have to start somewhere and I believe that's what this package is trying to do," said Leslie Gonzales with U.S. Capital Home Loans.

Senior loan officers for U.S. Capital Home Loans think if President Obama's plan is going to succeed, it must provide a way for at-risk homeowners to streamline the refinancing of their conventional loans.

"I'm hoping this will mirror what FHA is currently doing, and that is if you make your monthly payments on time for at least six months, they won't require a new appraisal or any income verification, they'll just qualify you for a lower interest rate and that will lower your monthly payment," said brad Wolfe with U.S. Capital Home Loans.

Here's one example how -- even an upside-down homeowner with a $250,000 mortgage at his original 6.5-percent interest rate could soon refinance to a flat 5-percent. That would put another $240 back in his pocket each month, more than $2,800 each year.

"That can make a significant difference to someone," said Wolf.

While these lenders agree, Obama's plan won't save everyone's home, it could be enough to stem the rising tide of foreclosures, which has fueled a dramatic drop in the valley's home values.

"Here in Las Vegas especially, we've been hit very hard and we're looking for someway out of this. This is a start. It may not hold all the answers but it appears to be a good start," said Gonzales.

Banks won't know what the specific lending guidelines will be under Obama's plan for another two weeks, and it will likely be another two months before they start lending under the more relaxed rules.

More than ever, lenders say it's important to remain current on your mortgage so you can qualify for relief.