Las Vegas NowProgram Change Makes More Eligible for Refinancing

Program Change Makes More Eligible for Refinancing

LAS VEGAS, Nev. -- The foreclosure crisis has left Las Vegas neighborhoods in disarray. Empty homes are bringing down the value of the homes that are still occupied. But millions of dollars is headed to the valley to help get neighborhoods cleaned up.

In the 89103 zip code, one of the hardest hit areas in the Las Vegas, you see foreclosure after foreclosure. Abandoned homes are left in shambles, but you can also see home that are well kept and this money will now help those homeowners.

Peggy Edwards' home was used as the back drop for a news conference that brought out federal leaders. Edwards has lived in the neighborhood for 18 years, but things have changed. "The streets were beautiful, everybody kept their yards nice and now all the yards are a mess," she said.

The mess has dropped the value of her home and made it impossible to sell. "We were on the market and my husband passed away unexpectedly, so I took it off. By the time I was re-grouped and ready to go back on, this is what happened," she said.

She's not alone. Her neighbor Rollie Gibbs has lived down the street for 15 years. "Right now, this has been going on for a couple of years. Ever since the housing market dropped, people just walked away from their homes and left," he said.

Senator Harry Reid, Congresswoman Dina Titus, and HUD Secretary Shaun Donovan announced neighborhoods like this will start to look better because of money coming from the government. "Thanks to the Neighborhood Stabilization Fund, we can start to buy up these houses and make a difference," said Titus.

That money could not have come any sooner for Edwards and Gibbs. They take pride in where they live. "People to get in here and make it look like a neighborhood -- people who care," said Edwards.

HUD is hoping the program will get houses back on the market faster, so property values will slowly start to climb. HUD says it will also start a foreclosure rapid response team in Las Vegas to help with the foreclosure mess.