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Foreclosed Homes for Sale in Nevada Offered to Families

September 16, 2009

Foreclosed homes for sale are being offered to lower-income families in Southern Nevada under a federal program launched in 2008 by President Bush to stabilize neighborhoods and another federal program launched by President Obama this year to stimulate the economy.

With a foreclosure rate of one housing unit out of every 62 households in August, Nevada continues to have the fastest pace of foreclosure in the country. Nearly 18,000 Nevada households received foreclosure filings during the month, a significant rise of 53 percent from foreclosure filings in August last year.

Because of its foreclosure situation, Nevada was given almost $72 million in federal assistance out of the approximately $3.9 billion allocated for the first funding round of the Neighborhood Stabilization Program across the country. Another $1.9 billion is being prepared for distribution to states and local governments for their stabilization and economic rejuvenation efforts.

In many areas that received NSP funds, most of the funds were provided to nonprofit housing agencies to buy vacant foreclosed homes for sale and fix them for resale as affordable housing units to lower income families.

The rest of the funds were used to demolish blighted buildings and houses to clear spaces for the construction of new affordable housing units.

Henderson was among Nevada cities that received NSP funds, getting a share of $4.1 million. The city has just worked out the papers for the first beneficiary of its program to help first time home buyers.

The first beneficiary is a casino accounting clerk with an annual income of less than $30,000. The city program was able to help her buy a 3-bedroom home for $49,500. Now she pays only $426 a month for a big home where her children who have been staying with friends can stay for a longer time.

Under the city program, qualified applicants are those that earn 120 percent or less of the city’s median income of $76,700 for a family with four members. The program also requires that around 25 percent of recipients belong to a lower income bracket, which is less than $31,900.

Applicants are also required to look for a house in neighborhoods with the highest rate of foreclosed homes for sale in the city as identified by city housing officials. They also need to repay the loan assistance provided under the NSP program if they sell their homes within 5 years.

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