Nevada mortgage borrowers receive millions in relief - FOX5 Vegas - KVVU

Nevada mortgage borrowers receive millions in relief

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LAS VEGAS (FOX5) -

Homeowners who lost everything are now finally getting some relief. That includes more than 9,000 Nevadans who, in some cases, are getting a benefit of hundreds of thousands of dollars.

"It's going good. But it's just the beginning," said Judah Zakalik, a partner at Peters and Associates.

Zakalik is on the front lines of the housing and mortgage crisis. His clients with Peters and Associates are under water and in trouble. Some continue to lose their homes to foreclosure.

In March of this year, a national mortgage settlement was issued in response to attorneys general from a number of states filing lawsuits against the big five banks - including Ally, Chase, Bank of America, Citi and Wells Fargo.

The lawsuits came amid allegations of robo-signing and bad loans, among other claims.

A progress report from the Office of Mortgage Settlement Oversight was issued Monday.

"It means [borrowers] can start repaying their debts which is what everyone wants to do," said Zakalik. "It gives them permanent relief. It gives them finality."

In Nevada, 9,071 borrowers received some form of relief with an average amount of $100,089. The total amount of relief that came to Nevada reached $907,904,834.

The one major problem some mortgage experts have with the relief efforts is that not everyone qualifies.

"Some of the requirements were that people at least be behind by January 2012, so those people who were not behind, or current on their payments didn't qualify for these principal reductions that we're now seeing," said Zakalik.

Nationwide, 309,385 borrowers have received some form of help through the national mortgage settlement.

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