Delay of foreclosures hurts neighborhoods

A delinquent property in a neighborhood brings down property value. This may be caused by homeowners letting home maintenance slip because they cannot keep up with mortgage payments. It may also be because people suspect a short sale or foreclosure sale in the near future.

This effect can come into play with the homeowner is as little as 90 days delinquent. The effect does not remain once foreclosure has actually occurred. The neighborhood may not be greatly affected by a single home in the area but if your neighborhood has a lot of foreclosures happening within a small area, the effect will most certainly be greater.

There is no fix all solution for this problem. The slower the foreclosure process, the more affect other area homeowners will feel. However, cutting down on foreclosure time is also in turn cutting down the time that a homeowner can be delinquent before a foreclosure will occur. Both sides are important matters that need to be considered in any changes in the foreclosure process for lenders.