Congressional Hearings Begin On Blameless Victims Of Foreclosure Crisis

In Washington, D.C., The Wall Street Journal Blog reports:

• Rep. Dennis Kucinich began the first of two days of hearings to call attention to the “largely unrecognized … and totally blameless victim — neighborhoods.” The Ohio Democrat and former Cleveland mayor heard made the case that concerns about creating a moral hazard — or rewarding risky behavior — were countered by the fact that neighborhoods weren’t at fault for the impending foreclosure boom.

For more, see Kucinich: Neighborhoods Are Blameless ‘Victims’ in Subprime Crisis.

See also, The Talk Radio News Service: Foreclosure crisis is leaving neighborhoods in ruins.

"Chairman Dennis Kucinich (D-Ohio) said that “when foreclosure leads to vacant and abandoned properties, surrounding neighborhoods and local municipalities suffer significant consequences.” Kucinich said these include:

• falling neighborhood-wide property values,
• equity loss,
• decreased rental availability,
• lowered business rates for merchants,
• increased crime from arson and vandalism,
• increased building and demolition costs,
• increased legal expenses and reliance on governmental service programs, and
• loss of tax revenue.

Kucinich called the neighborhoods “totally blameless” victims of the crisis who “had nothing to do with the transactions that resulted in the subprime mortgage meltdown.”"

Go here and go here for other posts on vacant homes leaving its mark on neighborhoods. neighborhood destruction from foreclosures zach