Lisa Simpson
Nov 19,2009
In: Foreclosure

Las Vegas Valley Residents Witnessing the Change Brought by Foreclosures

Eve Barrozo is a retiree. Her house stands encircled by empty foreclosed houses. The county has bought some of the houses. The neighbourhood is eerie without the sound of playing children. Pointing to a house in the corner she said, “These people – we only talked when we picked up the mail. But I miss the sound of their kids in the back yard.” Like that of many others the value on Barrozo’s house is disappearing and has fallen to $100,000 from $250,000 within a span of three years.

The federal government initiated the Neighborhood Stabilization Program partly to help the house owners like Barrozo. HUD sanctioned the municipalities of Las Vegas Valley $64.3 million in 2009 to purchase foreclosed houses, repair them and offer them for sale to those with low to modest income. The local administration had nursed hopes that in this way hundreds of houses would get a facelift and simultaneously many families would benefit.

The programme was scheduled to be covered within 18 months. But already half way through not much progress is being noted as observed by the Baltimore Sun. Five houses have been bought and sale of nine others are being processed. Very few families have moved and occupied these units.

The officials explain that the main hurdle before the local administration is that since the launching of the programme the rules are being chopped and changed. Recent changes have been brought about to combat the dangers the investors snapping up deals.

The federal fund is being monitored by National Housing Law Project under Meliah Schultzman from Oakland. She said that the main hurdle facing the governments across the country is the conditions of the market. She said, “Generally, funds have been spent much slower than expected. What we’ve heard is that investors are snatching up properties with cash much faster.” Schultzman forecasted that a third of the 306 state as well as local governments handling Neighborhood Stabilization funds would most probably miss the deadline causing the unspent funds to be returned.

The programme had given hope to the local residents that with millions of dollars rolling into the valley by the fall of next year hundreds of houses would have been bought. The money would go to the non-profit bodies involved in the work of buying, refurbishing and selling to needy buyers.
The county officials spent some time reviewing the various properties owned by Fannie Mae and Wells Fargo on the Internet but meanwhile private investors walked away with snappy deals.

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