Tuesday, Feb 12 2013 4:00PM

A new program in Nevada may help underwater borrowers gain some mortgage relief.

Bruce Breslow, director of Nevada's Department of Business and Industry, proposed a new state program to provide affordable housing assistance to underwater borrowers.

The suggested Home Means Nevada Home Retention Program would purchase distressed properties from the federal government in Nevada at a 30 percent discount, according to The Associated Press. Program officials would then work closely with underwater homeowners to help them refinance into more affordable terms. However, not all homeowners who would be interested in participating could enroll, and the state would instead choose from a pool of pre-selected homes, the AP explains.

"We wanted to tackle what we believe is the final obstacle in the market," Breslow told the AP. "Home prices have stabilized. The concern from the housing experts is ... shadow inventory."

Nevada was one of the hardest-hit states that continues to suffer from the recovering housing market. The program is not likely to be completed until March or April of 2013, he noted.

Several government programs are currently in place to help homeowners avoid disclosure, but the government only recently amended its Home Affordable Refinance Program to include underwater borrowers. Even under the new guidelines, only borrower with mortgages backed by Fannie Mae or Freddie Mac may be eligible for assistance. 

For more information, check out this resource: The Associated Press