To measure the impact of foreclosures on property values, a study out of
Chicago used a database that combines data on 1997 and 1998 foreclosures
with data on neighborhood characteristics and more than 9,600 single‐family
property transactions in Chicago in 1999. After controlling for some 40
characteristics of properties and their respective neighborhoods, the
study's finding were that foreclosures of conventional single‐family
(one‐ to four‐unit) loans have a significant impact on nearby property
values. Our most conservative estimates indicate that each conventional
foreclosure within an eighth of a mile of a single‐family home results
in a decline of 0.9 percent in value.
Cumulatively, this means that, for the entire city of Chicago, the 3,750
foreclosures that occurred in 1997 and 1998 are estimated to have reduced
nearby property values by more than $598 million, for an average of $159,000
per foreclosure. This does not include effects on the value of condominiums,
multifamily rental properties, and commercial buildings.*
Keep in mind that although this study was based out of Chicago, living
in Florida may only make you more susceptible to the impact of foreclosure.
In fact, Florida ranked #1 in foreclosures Nation-wide at one point.
If anything it must be abundantly clear the necessity to help your neighbors,
and help yourselves dig out from the sink-hole that is foreclosure by
using one of our many services. Our clients, fight trials, diligently
work at modifying their loans, battle to protect themselves from Debt
Collectors who violate the laws and most importantly work PROACTIVELY
rather than REACTIVELY in an effort to live debt free. Don't let your
life be dictated by foreclosure and debt collection, come meet with one
of us at Loan Lawyers, and see how we can fight for you!
*All findings can be attributed to
Web of Science ®.