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Foreclosure Crisis Takes it Toll on City Economies and Communities
By jason | March 13, 2008
New studies and reports are indicating that the foreclosure crisis has had a much greater effect on cities, the economy and the daily lives of citizens than simply putting many in danger of losing their homes. USA Today recently reported that the foreclosure crisis has resulted in a loss of revenue for many cities, probably due to the collection of less home and property taxes, as well as a higher crime index. The rise in crime is often attributed to the presence of more abandoned properties, and in this case also to the loss of income for many homeowners.
Ironically, as cities are losing revenue due to the foreclosure crisis, they don’t have the resources necessary to fight the problems associated with them, such as crime, or making sure abandoned property is cared for and bought up.
Much of this recent news has been brought forward by the National League of Cities, a group of representative from 211 cities nationwide. Using these facts and statistics, the League is expected to bring pressure against state and federal government entities this week to do something to not only fight the foreclosure crisis, but provide extra aid to the cities that need it most. One of the other important issues raised by the group is that in the wake of the foreclosure crisis, homelessness is up as well.
As property values continue to fall, the League of Cities sees problems intensifying for urban areas across the nation into 2008.
Topics: Foreclosure Crisis |