BluefoxToday blog : Las Vegas set to benefit from HUD foreclosure program

Las Vegas set to benefit from HUD foreclosure program

The Department of Housing and Urban Development, or HUD, has received a grant package that totals almost $4 billion to aid cities and states embroiled in mortgage foreclosures. These funds actually were put aside for this purpose in the recently passed Housing and Economic Recovery Act.

The effort has a fitting name, The Neighborhood Stabilization Program, and its aim is to let local and state governments use the available money under certain guidelines. They can tear down or restore abandoned homes and buy land temporarily to stabilize deteriorating areas and then promote redevelopment.

Possibly the more pro-active aspect of it is that they can also provide low- and moderate-income home buyers closing cost and down payment relief. If many of the foreclosed homes can be sold to owner-occupants, there would be less need for the local authorities to get involved in rehab and land purchase activity. That would be the easiest and fastest way to turn around areas with many foreclosed houses. The bulk of this grant money, therefore, ought to be directed to this particular segment.

HUD will use need-based criteria how to allocate the funds. Every state will receive something but areas hardest hit will receive the most. Foreclosure rates, mortgage defaults and subprime exposure understandably dominate the selection process. Las Vegas, North Las Vegas and Henderson, Southern Nevada in short, are then in a position to get a rather generous share for reasons well-known to anyone who follows the local real estate market. If the grants coming here are used wisely, they could also help steady the declining property values throughout the valley. Who wouldn't want that?

 

 

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • September 27 2008 10:00PM

Comments

Seems that the HUD grant might restore a healthy balance to a delicate condition Esku. I certainly hope this is the case. Very good news. hope your having fine weekend.

Posted by David Saks almost 10 years ago

This is the first use of the stabilization funds in the HERA that I have hear about. It is good to hear that the program is starting to help.

Richard

Posted by Richard Byron Smith, NMLS #184479, Mortgage Loan Officer (Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289) almost 10 years ago

I hope all this money they are throwing at the problem actually works and does not create a bigger problem.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) almost 10 years ago

Esko, I hope that the underwriting guidelines for these programs are reasonable.  What I have found is that the guidelines around here have been so tight that few qualify for the programs.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 10 years ago

David,

This grant will help especially the hard-hit areas, like Vegas.

Posted by Esko Kiuru almost 10 years ago

Richard,

Actually to get it started this soon is a bonus, knowing government.

Posted by Esko Kiuru almost 10 years ago

Randy,

The intentions are novel, now it's up to the communities to use the money wisely.

Posted by Esko Kiuru almost 10 years ago

George,

Guidelines can be tough and also complicated, turning some away from the program.

Posted by Esko Kiuru almost 10 years ago

Participate