Feds send $72 million to region to fight foreclosure

Friday, Sept. 26, 2008 | 2:20 p.m.

Sun coverage

Sept. 25 -- Price dips have bright side
Sept. 12 -- Nevada holds on to nation’s highest foreclosure rate
Sept. 9 -- Home prices slide as sales activity stays steady

Nevada state and cities will receive nearly $72 million from the federal government in emergency assistance to acquire and redevelop foreclosed properties, the U.S. Department of Housing and Urban Development announced Friday.

The funding includes $24.3 million for the state, $22.8 million for Clark County, $3.2 million for Henderson, $14.8 million for Las Vegas, and $6.8 million for North Las Vegas.

Nevada has led the nation in the rate of foreclosure for 20 straight months, with one in every 91 properties in the process of foreclosure.

Nationally, a total of $3.92 billion was allocated by Congress as part of the Economic Recovery Act of 2008. Local government formulas were determined by the number/percent of foreclosures, sub prime mortgages and mortgage defaults and delinquencies, HUD said in a statement.

The idea is to address abandonment and blight in areas with high rates of foreclosure, and while HUD emphasizes the use of the money to buy and refurbish abandoned properties, the use of the money is actually somewhat more flexible than that.

The state and the cities have to submit a plan to HUD by Dec. 1 outlining what they'll do with the money, which HUD will review for approval, HUD spokesperson Larry Bush said. They'll have 18 months to spend the funding.

Lon Deweese, Nevada State Housing Division chief financial officer, said the state will hold a series of meetings in the next few weeks to discuss the state's portion of the funding, which he said could go to local governments or other organizations for down payment assistance, fixing up foreclosed neighborhoods, and homebuyer counseling and assistance.

"That's $24 million plus that's not built into anybody's budget," Deweese said. "Depending on how it is allocated and to what types of jurisdictions, the state budget will have to be tweaked to that amount, which means the legislature will have a bite of that apple."

Deweese said a portion of the state's funding may go to Northern Nevada communities since they were not granted their own source of funding from the federal government.

"We think it's going to be important we be sensitive to the fact that all of Nevada has problems in regard to foreclosure and delinquency rates," Deweese said. "This is going to be a large input decision because it is a one-time, highly precious resource in a very charged environment. It's important we get it right."

Discussion: 14 comments so far…

By neiman1

9/26/08 at 4:57 p.m.

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Great. The Federal Government sent $72 million of our money to the state and county and cities to buy houses that banks don't want. How much more of our money are they going to send us while they borrow back out oil dollars from Saudi and China. We need leadership, not just more credit card expenditures until the next election. Thanks harry Reid. Thanks for you and Nancy Pelosi for including this in the last bank bill. PLEASE quit helping us. We can't afford it
By azsk8fan

9/26/08 at 5:17 p.m.

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Why point the finger at only 2 when it's the entire corrupt system - both Dem AND Republ. that is at fault - who's bright idea was it to begin with.....oh ya, that's right Bush..... dumb a$$
By jfnance32

9/26/08 at 5:19 p.m.

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Where do I sign up to get my cut?
By Brittanicus

9/26/08 at 5:34 p.m.

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Right now with our economy almost on the verge of collapse. The politicians have not revealed that to some extent illegal immigrants were allowed to get mortgages with just a IRS (ITIN) number.

This was a way to circumvent the fact, that they cannot be issued a legal citizen or resident Social Security number. Incorrigibles brokers fraudulently negotiated loans for homes with little or no cost in moving into a property. Today we have the largest bail out of giant mortgage firms, accelerated foreclosures as illegal alien families unable to pay the escalating mortgages walked away.

By flooding the market with unqualified buyers, government bureaucracies have artificially stimulated housing demand, which caused home purchases to explode, leading to the unsustainable housing price bubble that has finally burst.

http://www.familysecuritymatters.org/pub... Just about anyone can get a "stated income" loan provided one's FICO SCORE is high enough. By lowering the scale enough, Uncle Sam has indeed brought diversity to house ownership. However, at a terrible cost?

NEWSFLASH:

Please contact your Senator through the Capitol Switchboard (202-224-3121) and ask him/her to pressure Senate Majority Leader Harry Reid (D-Nev.) to allow a vote this week on H.R. 6633, the House-passed E-Verify reauthorization bill. The E-Verify program will die in November if Congress does not reauthorize it before Members leave for the election recess on Friday.

IT'S YOUR FAMILIES FUTURE. DEPORTATION OR OVERPOPULATION. IF WE DON'T STOP IT NOW, THEY WILL KEEP COMING..

JOIN 756.000 other American patriots at www.numbersusa.com , to stop the travesty of our immigration laws.

Learn about Immigration governmental corruption at www.judicialwatch.org HOW THE BAILOUT WAS CAUSED.

www.familysecuritymatters.org/publicatio...

PLEASE PASS ON THIS URGENT MESSAGE
By revtomperl

9/26/08 at 7:49 p.m.

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Why are all of these announcements made out of the national HUD office? Where are the local and regional officials?
By jfnance32

9/26/08 at 8:17 p.m.

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I understood that up to 1/3 of foreclosures are associated with illegals.

Clinton and the Democrats for years have push Fannie Mae and Freddie Mac and regular banks to give loans to marignally qualified or unqualified minorities.

Now we all are paying the price.

Will the people that are paying their mortgages on time get any of the 72 million?

No

Only the people who make bad decisions will get the $72 million and we are helping the stupid rich with $700 billion.

Punish the good and reward the bad.......what a screw up country we live in.
By PatriciaLV

9/27/08 at 3:57 a.m.

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Psst ..... Jim ..... Clinton hasn't been President since January 2001. It's been BUSH (R) and the REPUBLICANS (control of Congress from Bush's inauguration in 2001 through December 2005).

Sorry the news doesn't seem to reach you.

Oh and if you are so naive to think ANY individual is going to see ANY of that $72 million, well, I have some wonderful beachfront property for sale and I think you might be interested. It's in lovely Beatty.
By jfnance32

9/27/08 at 4:32 a.m.

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Opps...you forgot that the Democrats have been in control of the House and Senate for the last 2 years.

Sorry that the news did not get to you.

If you think that "individuals" will not get a taste of the $72 million then you have no clue on how corrupt government projects work.

I am sure that many individuals will make out like bandits in the $72 million to use to acquire and redeveloped the real estate. I am sure that friends of Reid empire will get a taste. Lawyers, real estate agents, construction owners and others will get their share of the $72 million. I am confident that "people" will get to acquire the property at an discount and then flip it at profit.

That is how the system works.

The downside is that it will push more houses on to the market and drive down housing prices even more.

Falling housing prices encourages more foreclosures.

LOL....this is a get my friends rich program and it will hurt the taxpayer.
By revtomperl

9/27/08 at 10:09 a.m.

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looky, much of the current problem originated in the Cuomo administration of HUD when homeownership was promoted as a goal. as they required FHA loans to have a larger percentage of irresponsible loans, the amount of failures increased. enter Senator Mel Martinez of Floriday who kept the HUD stuff in place when he was the Bush pet at HUD and in fact allowed Cuomo's lackeys to stay in place and looky what happens later. yes, the big D party has had a bit of an advantage in the house and senate and will doubtless have a larger majority in the next congress of screw ups. however, last I knew most of these decisions were in the executive branch and they have been busy killing people they don't like and denying us our civil rights and otherwise abusing their power. Ok, so that is a point of view - and my final word is that both parties are bad - we would really be better off with some kind multi party system where the government can only work when their is cooperation between people with different view points. ok, grin and bear it - and enjoy the bounty which we have and let the rich enjoy their excesses - as the Preacher said in Ecclesiastes - it is all VANITY! Have a good weekend and enjoy your right to express yourselves!
By ronaldo26

9/27/08 at 1:38 p.m.

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Isn't this a sweet deal.
Old Dingy Harry is going to be the proud owner of half of Las Vegas. Sweet...........

How you fools keep electing this piece of work is beyond me.

The state of corruption is alive and well.
By revtomperl

9/27/08 at 1:59 p.m.

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looky not only is the state of corruption alive and well but so are the states of misery, avarice, gluttony and many other wonderful things - hey, they are all represented in the cabinet as well as every place else - dirty Harry is perhaps the good news in the middle of all else
By PatriciaLV

9/27/08 at 3:58 p.m.

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And from what state do you hail, "ronaldo26"?

Jim, please explain to me how all these foreclosures are ONLY the responsibility of a LESS THAN TWO YEAR RUN in controlling the Congress, but a run of TWELVE YEARS of Republican control had nothing to do with it.

Really. EXPLAIN THIS.
By tommy4usa

9/28/08 at 6:01 a.m.

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hey Harry why then does obamas A.C.O.R.N. want more money from any profits? those 100% profits need to go to pay down the debt
By rittergirl44

9/28/08 at 8 a.m.

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How much of that 72 million do you think is going to help Nevadans? Every politician, his "help" meaning his unemployable family and mistresses will be lining their pockets with it in their so called, "jobs", that they will supply. Give it to the individual or straight to the mortgage company to lower the loan. Once it gets to a political group, consider it gone. No one but the politician will ever benefit from it. I'll save this email if you like so I can stuff it down their throats in 2 years when the first scandal hits.

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