What are the spillover effects of the foreclosure crisis?
Whole neighborhoods are being hurt. Foreclosed homes sell at a tremendous discount, and that undercuts property values in the surrounding area. Sometimes banks will hold onto foreclosed properties, leaving them vacant and neglected. And neighborhoods with high concentrations of foreclosures are more at risk for loitering, squatting, and crime. Unsuspecting renters are also hurt by foreclosures—particularly in the District, which has a high renter population. Nearly half of the 4,800 D.C. households affected by foreclosure are renters. No regulation requires renters to be notified of foreclosure, so they may not find out until the day the house or building they live in is sold. Also, renters may lose their security deposits and face unexpected moving costs. Washington, D.C., has strong renter’s laws preventing eviction, but most renters don’t know that. Our housing-counseling partners tell us many renters come in saying that landlords or banks told them they have to leave their homes de
Related Questions
- An area of our county was hard-hit by the foreclosure crisis, but is not within the 8 or above Risk Score areas. Can we provide NSP assistance anyway?
- What sort of an impact has the mortgage foreclosure crisis had on this credit card consolidation option?
- How is this foreclosure crisis different from a more general downturn in the housing market?
