Check out this link for Graphs or read below::
Colorado - Center for Responsible Lending (CRL)
What impact does a vacant foreclosure have on a neighborhood?
Vacant foreclosures have deferred maintenance which makes them readily noticeable. That leads to a whole plethora of challenges for the neighbors. Pests move in and, in many cases, so does crime.
There are those that worry that families are staying in homes without paying rent to the bank. They are concerned that the bank is losing perhaps $2,000 month. Therefore, over six months the bank would lose $12,000.
Studies have shown that just one vacant foreclosure in a neighborhood can cost the other homes 1% in value. In a neighborhood of fifty homes worth $250,000, each innocent homeowner loses $2,500. If you multiple that by fifty, the neighborhood lost $125,000 in net worth.
The Center for Responsible Lending has done great research on this issue. In my state of New York, foreclosures will cost innocent, near-by homeowners an average of $37,649 over the next few years. Go here to find out the numbers in your state. (For Colorado, see below)
It is time to end this war and stop killing the equity in the homes of innocent bystanders. The banks and families unable (or even unwilling) to pay the mortgage must come to an agreement to sell the home even if it is a short sale. All those who have taken up arms in this senseless battle should calm down. BY: Steve Harney. Emily thinks:: Banks need to absorb more of the losses - not the individuals. Thoughts?
Mortgage Delinquencies and Foreclosures
2010 State foreclosure projections: 47,400
State foreclosure projections (2009-2012): 140,223
Total state foreclosure starts (Q1-2008 through Q1-2010): 81,296
Total state foreclosure sales (Q1-2008 through Q3-2009): 27,003
Total state foreclosure inventory (end Q1-2010): 27,993
Total state past due mortgages (end Q1-2010): 91,980
Annual change in foreclosure starts in the state (ending Q1-2010): -1%
Change in state foreclosure starts (Q3-2006 to Q1-2010): 70%
Lost Wealth
U.S. lost home equity wealth due to nearby foreclosures, 2009-2012: $1.9 trillion
Statewide lost home equity wealth due to nearby foreclosures, 2009-2012: $15.7 billion
Number of homes in state experiencing foreclosure-related decline: 1,581,158
Average loss per home affected in state: $9,950
Squelched State Consumer Protection Laws
Higher-rate mortgages made by institutions with federal regulator that preempted state laws (2006): 23%
Mortgages of all types made by institutions whose federal regulator preempted state laws (2006): 40%
Overdraft Loan Costs
U.S. cost of overdraft lending: $23.7 billion
State's share of overdraft fees: $381.7 million
U.S. share of overdraft loan fees from debit card transactions: 44%
U.S. median amount of credit extended in debit card overdraft loan: $16
U.S. median amount of ovedraft loan fee: $34
Colorado Cheat Sheet
Lost Home Equity Wealth Due To Nearby Foreclosures (2009-2012):
$15.7 Billion
Average Loss Per Home Due To Nearby Foreclosures
$9,950
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