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Foreclosure Still Looming to Many Nationwide

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By : Leticia Carvalho    99 or more times read
A family loses a home after foreclosure. An abandoned home due to foreclosure attracts vandalism and crime bringing the house’s value down. The danger and eyesore brought by the wrecked house plus lower appraisal values is tough for the whole neighborhood. A study in Chicago found out those homes within an eight of a mile from a foreclosed home drop its value by 1 percent up to $250,000.

The crisis brought about by foreclosure even affects the whole locality. Foreclosure is associated with tax negligence that affects the local funds. The government even shoulders firemen and police services, maintenance and demolition of the abandoned reclaimed properties. Then low appraisal value brings tax base lower too, forcing the government to make the tax payers shoulder the fund shortage.

New York is one of the states that is not that heavily affected by foreclosure as Florida, Nevada and California. But they are greatly affected by the losses in Wall Street. New York has 50,000 cases of foreclosure and is down by $1.3 billion worth of tax income. Orange County, Queens and Staten Island are the most affected by this problem where inferior lending companies are rampant.

Baltimore, Buffalo, Cleveland and San Diego are some cities taking actions against these sub-prime lenders. In these cities court cases are now ongoing to get back the losses taken by the lenders. They believe that these low class lenders created public pest and failed to follow federal regulations by not sustaining these properties. The Council of Baltimore has a case against Wells Fargo because of its discriminatory policy against African-Americans. They were given pricier and sub-prime loans.

New York should be aware of these problems and should do actions to prevent more foreclosures. If not, this crisis will continue to flourish and further burden the working and the low-income class. The mortgage-troubled will further feel the problem with the depreciating value of their homes and local services, and living in a more dangerous neighborhood.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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