We all know that there is a cost to foreclosures. Many markets are very hard hit. It costs the banks, it costs the homeowner, but it also cost you and me.
In the Daytona Beach real estate market, we have been hit hard. There was a lot of sub-prime fueled speculation before the bubble burst. The impact to the real estate market and real estate agents has been worse than any of us could have predicted, but there will be cost to the local communities, county and state as we continue down this path.
All of us have been impacted by falling prices, but our communities are being impacted by eroding tax bases and increased needs for services by those who lose their homes. We won't know the overall impact for years.
I've done an analysis of the cost with references that can be viewed at Do Foreclosures Really Cost $70,000. There is substantial reason to believe that this may be a realistic estimate.
We are in a cycle and we will get out of this, but it will take some time with cost impact to most of us. Fortunately, we are living in the strongest economy in the world and we will be able to rebound.
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