The foreclosure crisis is costing local governments hundreds of millions of dollars, and neighboring homeowners billions of dollars. Each foreclosed home costs between $5,000 and $34,000 in maintenance, inspection, fees, and public safety calls. Foreclosures harm the values of all homes in a neighborhood, deter potential home buyers, and are a blight that can lead to illicit activity. The City/County also loses property tax revenue as values plummet. The loss of municipal revenue puts public services at risk, further destabilizing neighborhoods that have already been decimated by the crisis.

Wall Street recklessness, and a lack of oversight in predatory lending practices are to blame for this crisis and its devastating consequences. Making banks financially accountable for their neglected foreclosed properties could generate revenue to keep libraries open, teachers teaching, EMTs on duty, and other public services functioning.