Republicans Avoiding Offering any Plausible Solution to the Foreclosure Crisis in Nevada
Although the game of competing for the presidential crown among the Republicans is heating up, the party is avoiding offering any plausible solution to the foreclosure crisis in Nevada. The state ranks first in unemployment and foreclosure figures. Among the houses 58% are underwater with the value of the houses far below the loan due amount. Nationally 22% are underwater.
To add insult to injury during his tour ofNevada, Mitt Romney said that the idea was not good to “try to sop the foreclosure process. Let it run its course and hit the bottom”.
Recently Rep. Ron Paul (Texas) came forward with a string of deductions and tax credits to those who were first nest builders and also for buyers who had experienced foreclosures. He thinks this would be an effective way to give a fillip to the housing market.
Newt Gingrich said if he won he would repeal the Wall Street Reform and Consumer Protection Act of Dodd-Frank. Gingrich was confident that “overnight it will be easier to get a housing loan”.
Recently President Obama has suggested a plan to help those with negative equity. It would enable them to become current on their mortgages that would lead to savings of $3,000 per year on an average. The plan would be financed with bank tax that the House, led by the Republicans has little interest in supporting. In a speech Obama admitted, “I’ll be honest, the programmes that we put forward haven’t worked at the scale that we hoped. Not as many people have taken advantage of it as we wanted”.
Experts think that the Republicans have hardly spoken on the housing crisis inNevadafor political expediency. Professor David Damore ofUniversityofNevadaatLas Vegassaid, “They’re not going to want to propose something that would involve more government intervention. But it’s kind of hard not to have the government involved in a situation likeNevada”.
Southern Nevada’s Legal Aid Center has been holding talks in a class room of the law school of the university to acquaint the troubled homeowners with the in and out of the mortgage issue. The Center claims that three fourths of those who have attended these talks have been able to continue to stay in their houses, at least for some time.
The latest problem is that those who had got their loans modified in 2009 were re-defaulting.
