Foreclosures can devastate entire neighborhoods and cities, not just the borrowers who lose their homes. Foreclosures take a toll on neighborhoods and other homeowners, not just those who have trouble keeping pace with their mortgages.
- Increase violent crime in neighborhoods.
- Decrease property values an average of $2,000 per foreclosure in low-income neighborhoods.
- Cost cities revenue as falling property values jeopardize crucial property tax streams which fund public systems like schools, law enforcement and roads.
- Individual homeowners in foreclosure who will lose more than $2.2 million,
- Lenders/Investors who will lose more than $19 million,
- Local Governments who will pay more $6 million in increased police costs and lost property tax
- Neighborhood homeowners whose homes will lose more than $13 million in value due to foreclosures around them.