Forced Moves

The ongoing foreclosure crisis-foreclosures were up 65% in April from the April 2007 level and are undoubtedly headed higher, as house prices declined a record 14.1% in the first quarter from the first quarter of 2007-is teaching us a lot about the losses that extend beyond the loss of a house.

Take the community losses. Here are just a few examples. The Center for Responsible Lending estimates that each foreclosed property costs the jurisdiction in which it is located almost $20,000 in lost tax revenue and other related costs. Property values for houses near foreclosed properties will decline by almost $202 billion.