When a neighbor’s house falls into debt and is foreclosed on by the bank, it can do damage to more people than just the owners of that particular property. When a house gets foreclosed on, it can be an absolute nightmare for neighbors.
Perhaps the biggest issue is that a property in financial difficulty can further distress the entire neighborhood. When one house comes on hard times, it can fall into disrepair and depreciate the value of the whole neighborhood. One woman, in Boston, reported to the Boston Globe that her home depreciated $100,000 in value after the bank seized the house next door.
This knock-on effect can often leave whole areas depressed and under threat of foreclosure.
In addition, the quality of life experienced by other families in the neighborhood can fall drastically when one or more homes suffer. Homes seized by the bank will usually be sold through an auction. However, many homeowners report that homes in foreclosure in their area attract large numbers of bargain hunters who will come by looking to grab a good deal, often at all hours of the day and night and frequently without a realtor.
Is there a Solution to the Problem?
Unfortunately, the short answer is no. There is no quick and easy solution to this problem. The truth is, as one home falls onto hard times, so too will the surrounding properties, and so on.
There are a few measures that can be taken to at least preserve a certain quality of life. Erecting a fence and planting privacy trees can be an excellent solution to the problem of strange home-seekers peering in through windows and making noise as they pass on the street. Also, it is often a good idea to consider installing an alarm system to preserve the safety of your home. In the long run, if done well, such measures can also maintain the value of the property.