Gibbons asks lenders for 90-day freeze on foreclosures

Richard Brian

Nevada’s rate of home foreclosures has led the nation for several months, with signs like this one in northwest Las Vegas popping up across the valley. Gov. Jim Gibbons on Thursday asked for a 90-day halt to foreclosures in the state.

By Jeff Pope (contact)

Thursday, Dec. 11, 2008 | 4:54 p.m.

Real Estate in Crisis

Audit critical of state’s regulation of mortgage companies (12-11-2008)
Their dreams shattered, investors left to wonder (11-28-2008)
City works to prevent foreclosures (11-13-2008)
Those empty homes for sale are harming communities (10-28-2008)
State plan could ease pressure of ‘tsunami’ (10-23-2008)
Reid, Goodman tour foreclosed homes, present remedy (10-22-2008)
Bill to protect renters in foreclosure cases (10-20-2008)

Gov. Jim Gibbons asked for a 90-day freeze on foreclosures in Nevada in a meeting today with representatives of mortgage lenders.

The lenders agreed to devise options and ideas to keep Nevadans in their homes but did not say if they would agree to Gibbons' three-month moratorium on foreclosures. They plan to further discuss the options with Gibbons within the next few days, according to the governor's office.

Current statistics show home foreclosures could hit 30,000 in 2008 in Clark County alone.

"If Wall Street and large financial institutions can get relief, it is fair and reasonable for Main Street and local homeowners to receive consideration from financial institutions," Gibbons said.

Participants in the meeting included Wells Fargo Bank, Countrywide/Bank of America, the State of Nevada Housing Division, Bank of Nevada and the Nevada Bankers Association.

The lenders said they are willing to modify loans to keep people in their homes.

"Time is a critical element here, as the problem continues to escalate," Gibbons said. "We must act quickly because too many Nevadans have already lost their homes, which is devastating, particularly during the holiday season."

Jeff Pope can be reached at 990-2688 or jeff.pope@hbcpub.com.

Discussion: 6 comments so far…

By johnvegas

12/11/08 at 7:15 p.m.

Suggest removal

This makes me so angry!!! What about the poor people that have already been foreclosed on??? Out luck I guess...
By tbvegas

12/11/08 at 7:28 p.m.

Suggest removal

This makes me angry too!!!! What about the responsible people who paid their mortgage and waiting to buy up the foreclosures from the irresponsible!
By WilliamClarke

12/11/08 at 8:28 p.m.

Suggest removal

Why not a 180 days. This will have everyone take a deep breath.
By vegasgurl4fun2

12/12/08 at 4:28 a.m.

Suggest removal

"The lenders said they are willing to modify loans to keep people in their homes."---This is one fat lie! After I lost my income and could not replace it with something comparable, Countrywide refused to work with me by lowering my interest rate, modifying my loan, entertaining a short sale or deed in lieu of foreclosure. The lenders have no interest in helping anyone keep their home. There are attornies/trustees handling the foreclosure transactions who get paid 5 percent of the foreclosure sale...so this is a no-brainer. Too late. I paid $256,000 for my retirement home and the banks have slashed the foreclosure prices in the subdivision down to $89,000 for the same property that I have/had. Even if I had the money now I would not keep the property due to the banks slashing the property values in the development. Why would I pay $256K now for a proerty with a value of $89,000. My Trustee's Sale date is 1/7/2009 at 10 a.m.
By Ruralsrule

12/12/08 at 4:33 a.m.

Suggest removal

This is another one of those ideas that looks good on the surface (i.e., no new taxes) but ends up making the situation worse. Very few economists support a foreclosure moratorium. All it does is postpone the problem. Instead of 30 foreclosures a month for three months, we'll have 90 foreclosures on one day after the Giblet's moratorium ends.
By worstnightmere

12/12/08 at 8:21 p.m.

Suggest removal

The only place the foreclosure home owner is going to receive any kind of relief, is to file a Chapter 13 or Chapter 11 in Bankruptcy. The modification loan process is fraud, the bank will tell the homeowner they will work with them, and promise all kinds of solutions, but, instead the Mortgage company, will drag this process on and on , until the home goes into deep foreclosure default, at which time the home is then put up for public sell, which is called a Notice Of Trustee Sale.... Gibbons has no power or say to tell the Mortgage Companies to stop foreclosure, Gibbons is Fraud...