Read about these surprising ways that a foreclosure can impact your neighborhood, your health, or your city.
You don’t want to go through a foreclosure. That’s fair; nobody does. It’s the end of a long trip from your hopes and dreams in buying a new house, to the burdens and joys of home ownership, to the loss and heartache in knowing that what you’ve worked so hard for can all be taken away from you. A foreclosure causes more harm than you may be aware of.
Foreclosures can hurt your health
A foreclosure is very harmful to your credit score. This can affect your ability to restructure other debts or to handle financial crises if they arise. In addition to the financial harm, though, a foreclosure can cause damage to your mental and physical health. The stress of such a life-altering event can lead to anger and depression, as well as lack of sleep and increased illness. What impacts your wallet can also impact your mind and body.
Losing a home to foreclosure can cause a rise in crime
With blight comes the problem of crime. A small increase in the foreclosure rate, just 1%, can increase violent crime by over 2% in a particular district. Call it an offshoot of the broken window theory – as the neighborhood begins to show signs of neglect, criminals view it as a place that is not taken well taken care of–and prime real estate for criminal activity, pun intended.
Foreclosures can hurt your neighbors
Your foreclosed house can also make it more difficult for your neighbors to sell their houses. As the house ages, it deteriorates, even to the point of become unlivable. Such a house makes the neighborhood look less attractive to new home-owners, and will lower the value of your neighbors’ houses, making it harder for them to sell their own homes.
Your city loses money
The city in which you live depends on its homeowners for a significant portion of its revenue. If you lose your house to foreclosure, the city loses a valuable resource of income from taxes. This is money that often goes to things like school budgets and roadwork – services vital to a strong community. The bank that the house defaults back to will need to wait a set period of time, depending on local laws, before it can sell the house to a new owner. During that wait period, the city has no income, and its budget suffers.
Seller Solutions helps homeowners stop foreclosure from happening
A completed foreclosure leaves you, as the previous homeowner, with no options regarding the house you used to own. But if you or someone you know is facing a looming foreclosure, there are options to help stop the process. You don’t need to go down this road alone. Give us a call; we can help.