Foreclosures Squeezing Tenants, Cops, City Governments

In Minneapolis, Minnesota, The Associated Press reports:

• Homeowners who can't keep up with their mortgages aren't the only ones being hit by the foreclosure crisis. City governments and city officials are losing time and money to the problem, too. [...] A bright orange notice on the front door [of one tenant] warns that the water will be shut off unless the landlord pays a bill of $117. The duplex is also in foreclosure, so either way [the tenant] has to find new housing.

Among the enumerated consequences of foreclosed homes for municipalities are:

1. Unoccupied houses don't use utilities such as water, sewer and garbage service, meaning the costs have to be spread among fewer people citywide,
2. Cops spend more time chasing people out of foreclosed properties,
3. Inspectors spend more time citing properties for uncut grass or unshoveled snow,
4. Government property appraisers have a tougher time calculating fair market value of homes for tax assessment purposes.

In nearby New Prague, the city has to decide whether or not to foot the bill for electricity to keep sump pumps running to a pocket of foreclosed homes in one subdivision. If they don't, the risk of possible water damage to the homes will make them tougher to sell and keep them off tax rolls longer. For more, see Cities, tenants also feel foreclosure effects.

Go here for other municipalities getting squeezed by foreclosures. delinquent tax problem