Daily Real Estate News  |  January 28, 2008  |   Cities Feel Impact of Rising Foreclosures
The conversation at the U.S. Conference of Mayors winter meeting, which ended Friday, was focused on stemming foreclosures and managing vacant properties.

After all, mayors say dealing with vacant houses hits the municipal budget hard. Chicago estimates that each vacant house costs the city an average of $34,000 for inspections, court actions, extra law enforcement, visits from city utilities, and sometimes demolition.

Kilder, treasurer for Genesee County, Mich., whose county seat is in economically devastated Flint, urged mayors to stop selling tax liens and liquidating their interest in abandoned property because it puts the city in the hands of speculators.

"Even if a community doesn't own the property," Kildee says, "local leaders own the problem. The public is going to hold us all accountable for the conditions in our neighborhoods and simply saying this property is owned by some mortgage company or some speculator in some city doesn't get us off the hook."

Source: The Wall Street Journal, T.W. Farnam (01/28/08)