The onset of a foreclosure can have a ripple effect for more than just the homeowner. Not only is the family who is losing a home affected by the actual home foreclosure; but an entire neighborhood and community can become victims of the ripple effects of home foreclosure. Florida neighborhoods and communities with a high number of foreclosures see a decrease in the value of other homes and also the visible eye-sores of homes that are no longer maintained.
There are reports that point to a disproportionate amount of homes that are left unattended, with overgrown lawns, garbage and other debris. Many are blaming the bulk of these unsightly houses as being part of a larger problemracial discrimination of a new type. The allegations claim that it is mostly in minority neighborhoods where banks leave these foreclosed homes to essentially rot away and affect the value of every other home in the neighborhoods.
One report contends that banking and mortgage giant Bank of America is guilty of maintaining and handling homes in white neighborhoods much better than they have been in minority neighborhoods. There have actually been complaints filed accusing the bank of violating the Fair Housing Act. An investigation into the allegations has pointed to a marked increase in homes that have broken locks and doors, damage, and trash compared to similar homes in non-minority neighborhoods.
While the bulk of the effects of home foreclosure in Florida is felt by the home owner who is struggling, when entire communities or neighborhoods suffer, it becomes a more pressing issue. Anyone who is facing foreclosure may want to find out their options for keeping their homes. If a home is foreclosed on, neighbors may want to inquire as to who is responsible for upkeep for the good of the entire community.
Source: The Atlantic Cities, How Banks Are Still Discriminating Against Minorities in the Foreclosure Crisis, Emily Badger, Sept. 25, 2013