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Communities Suffering from Foreclosure Fallout
By john | June 30, 2008
When the crisis in the housing and mortgage industries started, the hardest hit is obviously the homeowners who can no longer afford to meet their mortgage obligations. but in addition to these troubled homeowners, the communities where they reside are also at risk from suffering the after effects of having numerous foreclosure properties in the neighborhood.
According to MNBC.com, nationwide, communities are reporting an increase in the incidence of foreclosure homes getting vandalized, services getting cut back and local governments experiencing lower tax collections. These communities are usually located in states with the highest foreclosure rates including Arizona, Florida and California.
Some neighborhoods have even become almost like ghost towns because of the many abandoned homes dotting the streets. The abandoned homes have also become targets for vandalism, which further decreases the property’s market value. Some neighbors try to prevent such crimes by barricading the windows of these dilapidated properties.
In Florida, there are reports of an increasing number of families abandoning their homes and declaring bankruptcy. There are also many unfinished condominium projects, primarily due to the steep decline in real estate prices and sluggish home sale.
Some distressed homeowners are also reporting that many communities have grown silent amidst the increasing number of foreclosure homes in their neighborhoods. Most of them have even decided to simply wait for the eviction notice to come. on the other hand, those who have managed to escape the foreclosure crisis are dreading the future and wondering if they will be next.
Such negative thoughts and emotions are certainly taking a toll on previously thriving communities. Despite efforts of the local governments and non-profit organizations, foreclosure rates remain to be high. Nationwide, foreclosure rate has actually increased by almost 49 percent from last year, with one filing for every 483 homes. For the month of May, there were 261, 255 homes which entered some stage of foreclosure.
Topics: Foreclosure |