I have a philosophy on why Las Vegas might be more likely to have residents in financial trouble, and bigtime foreclosures, etc etc. But before I say this, I want it to be clear that I am not referring to all Las Vegas residents or visitors. Just saying there might be a larger concentration of people with a certain mindset which lends to financial failure.
What do people think about first, when they hear "Las Vegas"? They think money, and FREE money for a lucky few. Think about something for a minute here: If a person's mindset is on "free money", they must not be thinking about where that money is coming from. Because if they did, they would feel guilty. That free money is coming out of someone else' wallet, who lost it to the casino. SO.... what I'm saying is that the type of person who would be drawn to that hopeful easy win, would also not likely think ahead about reality and about what they can and cannot afford in life. The whole mortgage disaster came up from this very mentality. Let's say you make $50,000/year, and your job is fairly secure. You go house hunting, and a realtor shows you a $1 million house, which is what you always dreamed of, and tells you that you can afford it with a convoluted short-term interest-only loan with ultra-low payments, and in fact you can afford the payments just fine. What happens when the interest-only term is up? Of course; you refi, and do it again. Simple. What's wrong with that? Well, here's what's wrong with it: When a bank makes a loan, it plans on earning a certain amount of interest, and that is riding on the theory that you will be keeping the loan for the whole term, and will be paying interest the whole time. They might take a loss for the first couple years, which would be OK if you didn't refi them out of it in 3 years. So in other words, buying a house and deliberately planning to refinance it before the term of the loan is up, when the loan is the type where you know that the bank and the investors are counting on you NOT refinancing it or paying off early, is cheating morally. What happens when you cheat morally? Maybe your boss, who has promised you the $50K income for your excellent work, secretly didn't plan on keeping the company afloat if it didn't bring in a certain comfy amount for the stock holders. Think about that....
There is nothing free in life. A good person MUST PAY, whether in cash, in actions, in good will, or just in good intentions. Someone gives you few extra tools they don't need; maybe you give a stack of blankets to the Red Cross, or maybe you use those tools to change an old lady's flat tire. It's all a lifetime exchange, and those who hope to win lotteries, and go to Las Vegas with $100 and come home with $1 million, cannot live a good life for very long. It doesn't happen.
I think the word "KARMA" is suitable here..
As far as the real estate market in LV (not N. LV), I bet it's also floundering. My sister-in-law lives in a nice part, just northwest of the strip, and her house has come down about 50%, she said. Luckily she bought long before the boom, so she's OK for now.
Charles
Please Scroll Down to See Forums Below 
