The Cost of a Foreclosure

When a home is left unoccupied and vacant the cost to the city runs high. These properties attract crime and are vulnerable to arson and accidental fire, health and safety hazards. They also contribute to lower property values and lost tax revenue.

A single foreclosure can cost the city $5,000 to $35,000. The National League of Cities (NLC) conducted a survey that found that foreclosures and the declining housing market ranked prominently as causes for fiscal budget crises.

That means at a time when cities are contemplating slashing city services, they are also asked to pick up the tab for maintenance. This includes:

• Securing property- boarding doors, windows, roof
• Trash, debris, graffiti, vegetation removal surrounding property
• Waste, flammable, hazardous material interior
• Failure to maintain pool, which creates health hazards
• Public safety response for theft of wiring and plumbing from the interior of a home
• Public safety cost and response to respond to criminal activity or trespassing by gang members, drug users, transients, squatters