Grand Rapids Michigan Real Estate Blog

head_left_image

Foreclosures Costly for Your Neighborhood & Community

Foreclosures Costly for Your Neighborhood & Community

You might think that a foreclosure or short sale of a home in your

neighborhood doesn’t affect you.  It is a shame for those people but what

does it have to do with you?  Plenty, it turns out, if you plan on moving

in the next few years.  According to the U.S. government’s website about

the National Mortgage Settlement with major banks, it can affect your

bottom line tremendously.

 

hudhousenotice thumb Foreclosures Costly for Neighborhoods & Communities

When a house is subject to foreclosure, it creates a ripple effect

that lowers the value of nearby single-family homes and other properties.

  In 2009 the Center for Responsible Lending projected that homeowners

living near foreclosed properties, on average, would lose $7,200 in property

value, and projected a four-year increase in losses to $20,300 per household.

 

No one who owns a home is safe from this reversal of real estate values.

We have seen this play out in wealthy suburbia and lower priced homes, where

it hits financially vulnerable households.  Homes that were selling for $100,000

a  few years ago are now priced at $80,000 – $60,000, or considerably less. 

We have heard that investors are being offered homes grouped in tens in some

areas, that  are  priced below $10,000 each.  The effect on neighborhoods is

sobering.  In fact, it traps homeowners in homes that they can’t sell.  Their only

options are short sales or foreclosure to get out from under their mortgage on

a home that isn’t worth what they are paying for it.

 

Because we have been watching this train wreck in our local neighborhoods

for awhile now, we are optimistically awaiting the outcome of the National Mortgage

Settlement.  This could bring financial relief to millions of homeowners

by lowering their monthly payments.  Many Michigan households that teeter on

the edge of a financial precipice are waiting for relief……….Will they get it?


Originally published at Grand Rapids Real Estate.com

_____________________________________________

The authors of the this blog write about Grand Rapids Real Estate,

the Greater Grand Rapids MI area, and what it is like to live in

West Michigan.  We believe: Grand Rapids is a Great Place to Live!

search for Grand Rapids homes Find Grand Rapids Home Value Grand Rapids Relocation Guide

Westbrook Realty Grand Rapids MI Real Estate

                          Contact Terry   616-292-7263

OUR FLICKR PHOTOSTREAM

________________________________________________________

 

 

 

Comment balloon 1 commentTerry & Bonnie Westbrook • February 27 2012 07:04AM
Foreclosures Costly for Your Neighborhood & Community
share
Foreclosures Costly for Your Neighborhood & Community You might think that a foreclosure or short sale of a home in your neighborhood doesn’t affect you. It is a shame for those people but what does it have to do with you? … more
Don't Leave Home Without A Home Valuables Video
share
Don't Leave Home Without A Home Valuables Video Recently I was reading about a rash of robberies in our area that were focusing on grabbing jewelry and other small items that can be sold for quick cash. Home invasions seem to be an… more
Forest Hills Michigan Neighborhood Real Estate Market Reports Jan-Dec…
share
Forest Hills Michigan Neighborhood Real Estate Market Reports Jan-Dec 2011 The 2011 Market Reports for Forest Hills suburbs of Grand Rapids are linked below. Some areas went down in activity, some went up, some stayed… more