Foreclosures Hurt Neighborhoods

Some people do not realize that the value of their home can be negatively affected even though they have an excellent payment history. News reporters have taken it upon themselves to report on where foreclosures have taken place and the impact that they have had on neighborhoods. In San Antonio, Texas there are a number of foreclosures hurting neighborhoods.

Whether it is a simple starter home or a small mansion, there are currently more foreclosures in the United States now than there were in the 1980s during the Savings and Loan crisis. Know that if you live near a foreclosed home, the value of your home will be lowered.

One case study involves a certain couple about to lose their home. The couple could no longer pay their adjustable rate mortgage payment. They had originally been paying seven hundred dollars a month but their payment shot up to twelve hundred dollars a month. This couple had a sub-prime mortgage.

Like many people who had been granted sub-prime mortgages by their lender, the couple stated that they did not understand the terms of their loan. They were not told that a subprime mortgage has an adjustable rate and that it would most likely go up during the life of the mortgage.

Though the couple was going to lose their home, their neighbors were going to have a problem as well. A recent study showed that individuals that live near or around a foreclosure will have their own property value decrease by about five thousand dollars.

A neighbor of the couple said that the couple’s foreclosure would definitely affect her. She stated that if she were to sell her home, it would most likely stay on the market longer than necessary. As a result she would be stuck with the original mortgage while trying to obtain a new mortgage.

If a neighborhood is plagued with low property values, this always means lowered property tax revenues. These revenues help pay for public services. Foreclosures cause a spill-over that affects everyone.

In San Antonio, Texas reporters discovered that there were over eleven thousand foreclosures that had taken place since the beginning of 2008. This shows that it does not really matter what part of a town you live in, foreclosures are going to affect you regardless of how solid your finances are and how prompt and consistent you are with your mortgage payments.

This month a large crowd of individuals gathered at the Bexar County Courthouse in San Antonio in order to attend an auction of properties that have been foreclosed upon. Bexar County was attempting to sell one thousand foreclosed homes. The large amount of foreclosures was not as high as in some cities but the number is extremely high for San Antonio. That high number of foreclosures is the highest total for the city in twenty years.

A realtor is San Antonio said that homeowners should not get too worried about the number of foreclosures. The realtor stated that even though the foreclosure numbers are high, the complete number of houses available in San Antonio is much higher than it was in the 1980s and the 1990s. The realtor continues to say that though foreclosures hurt the value of properties nearby; property values as a whole have increased.

Even so, experts believe that the main reason property values have not gone down in that city is because home prices are over-inflated. Only time will tell if the foreclosure situation in San Antonio will get better or worse.

Texas Foreclosure Homes - top cities

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