The Cost of Foreclosures

Foreclosures bring devastating public costs in lost property taxes, falling property values, and the cost to the city to inspect, maintain and secure foreclosed properties.

The typical foreclosure costs local governments $19,229 for increased expenditures in safety inspections, police and fire calls, trash removal, and general maintenance.

Bank-owned foreclosures cost the City of LA up to $144,582,851. South LA foreclosures costs upwards of $70.5 million, or perhaps even more since these foreclosures happen to be some of the most neglected properties in the city.

With 19,000 LA families in some stage of foreclosure today, these costs have nowhere to go but up.

Isn’t it time banks pay their fair share?

For more information, see ACCE’s September 2011 report “The Wall Street Wrecking Ball; What Foreclosures Are Costing Los Angeles Neighborhoods

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  • Tour of Blighted Foreclosed Properties 2013

  • Los Angeles Times

    "All the filth I saw opened my eyes: to the devastation caused by people addicted to drugs, by banks addicted to profit, and by a city government too weak and ineffective to protect its poorer residents." 

    Read the rest of the article

    If properties were inspected by the City of LA at the time that the bank took possession, each of these properties might have incurred fines of up to $100,000, for a total maximum fine of $45.7 million.
    Read the report here.
  • Marketplace

    "There are 68 documented criminal street gangs in LAPD southeast division. Because of the foreclosure crisis, those gangs and the area's homeless population have a whole lot more housing to choose from."

    Read the rest of the article
  • Daily News

    "Davis' battle illustrates frustrations homeowners around the region have had trying to get foreclosed properties maintained in the absence of owners." 

    Read the rest of the article
  • Flickr Photos

  • United in the Fight Against Blight

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