Subprime Foreclosure Spillover
Subprime foreclosures are resulting in a severe drain on property values—even for families paying their mortgages faithfully every month—and will cause 44.5 million homes to lose a total of $223 billion in wealth over the next few years, most of it in 2008 and 2009, according to the Center's report. In addition to foreclosed homeowners, the $223 billion drain—which amounts to $5,000 per nearby household—will have a severe impact on many cities and communities, because lower property values translate into less revenue to fund schools, hospitals, and other vital community organizations at the