How A Foreclosure Impacts The Community

: Chris Lee Law Firm

  Filed under: Foreclosure

foreclosureThe foreclosure crisis has become a national problem, one that reaches far beyond the boundaries of a neighborhood. Although people assume that a foreclosure isn’t their problem unless it is their house that is under threat, many are learning the hard way that this simply isn’t true. A single foreclosure on a street can negatively impact the entire community. Not only does the family living in the home experience poor outcomes, but the neighborhood also stands to take a hit from the far reaching effects of a foreclosure.

One Bad Apple

As they say one bad apple can spoil the whole bunch. This is definitely true in many of the hardest hit housing markets around the United States. When one home enters foreclosure, it is likely that others will either follow suit or experience the fallout from the foreclosed home.

Foreclosures can drastically impact the property values of a neighborhood. Even though the remaining homes have not changed or suffered any direct problems, their location near a foreclosure can bring property values down by several percentage points. Further, a foreclosure can lessen the neighborhood’s tax base, causing a reduction in vital services funded by taxpayer dollars. Fewer services can quickly lead to a downturn in the quality and safety of a neighborhood.

It isn’t uncommon for foreclosure homes to become targeted by criminals. Abandoned or vacant properties may become the focus for neighborhood trouble and encourage criminal activity. Even worse is the damage done to these homes by those using the homes to support their activities. Buyers of foreclosed homes are often scared away by the home’s appeal and surrounding damage. A single foreclosure can easily tarnish a neighborhood to potential buyers.



Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information