The city of Las Vegas has announced that they will be receiving $200,000 from HUD to help stop foreclosure in the city. Obviously, this is not enough to money to help homeowners directly with their past-due mortgages, so what is this money to be used for? The city plans to develop an educational program the will help residents facing foreclosure learn about their options.
It makes sense that Las Vegas would be targeted for a program like this because foreclosures in Nevada, especially in the Las Vegas area, are higher than in any other area of the country right now. Las Vegas is becoming overrun by empty houses that have been lost to foreclosure or are still in the process of being foreclosed and have been abandoned by their owners.
The $200K that Las Vegas will receive for education is nothing compared with the $43 million that the state of Nevada is receiving from the federal government to reclaim neighborhoods that have been ravished by foreclosure. This money will allow the communities where the homes are located to either buy and fix up these properties or demolish them so that something new can be built in their place. Of the $43 million promised, the city of Las Vegas will get $10.5 million.
The sad part is that none of that money will be used to stop foreclosure and help people save their houses. Rebuilding communities is important work, but what about the families who are still in danger of losing their homes? Something tells me that $200,000 won’t go far toward helping them out.