Foreclosure Link To Abandoned Houses And Crime

November 15th, 2007

Of the 85 bungalows on the road that links West Ontario to East Ontario Avenue, 22 are vacant after falling foul with foreclosure rules. Now these houses are the sources of fire, vandalism, and prostitution. The residents of the adjacent houses in this historic region of Westview Village are terrified. Many are scrambling to sell off and get off.

Thus those who have not joined the cursed foreclosure group are indirectly getting affected. The valuation of their properties is falling because of the gray neighbourhood. The meltdown is crossing all income barriers. Community organizations are trying to keep track of vacant houses and notifying the authorities. But the alarming rise in numbers is nullifying action.

Georgia ranks 8^th in the national foreclosure rate with a ratio of 1:142. Nevada tops the list with 1:61. The country figures read 1:196. The situation is so bad that people are afraid to venture out of their homes after dark, says a spokesperson of Atlanta Police department. The crime rate rises in proportion to the number of foreclosures according to a recent study conducted by reputable institution. When foreclosure rate increases by 1% the crime rate rises 2.33%. California is second in the foreclosure race with the ratio of 1:88.

Another statistical survey conducted by a consumer advocate group shows that 44.5 million families in the country will see their property values fall by $223 billion. The minorities will be the most affected. It is the low-income people who jumped to the sub-prime bait and got ruined in the bargain. But now the foreclosure problem has taken on different dimensions and spread over to include all income groups. Elk Grove, California is witnessing gang warfare, drug abuses, theft and graffiti galore. The regions that had ballooned during the housing boom are now punctured flat with overgrown weeds, stinking pools and signs of sale. Property value has on an average dropped from $570,000 to $400,000.

One can’t pick and choose tenants anymore. At any cost the house must be occupied. But bankers balk at the idea of becoming landlords. They are moneylenders but money is not flowing in. Vagrants are moving in and lighting fires, breaking windows, looting fittings like pipes and fittings – anything that can be sold for scrap. Police and local administration are not equipped to tackle foreclosure-connected problem on this massive scale.

Via