Impact of the Foreclosure Crisis

How's Teaneck weathering the foreclosure crisis?

Not so good.

Based on data from realtytrac.com, there approximately 200 homes in Teaneck that are impacted by the crisis. This includes 154 homes in pre-foreclosure, 6 homes to be sold by auction and 36 bank-owned homes. [This is a correction from a misreading by me of the data - thanks to Tom Abbott for catching my mistake.]

This crisis is not just a problem for the people who lose their homes. It affects us all:

• An abundance of foreclosed properties that are boarded up or poorly maintained reduces the curb appeal of whole neighborhood leading to downward pressure in property values.
• A glut of homes on the market also exerts downward pressure on values communitywide.
• Absentee owners and rental tenants do not maintain properties to highest standard and have fewer ties to the community.
• Higher vacancy rates result in fewer ‘eyes’ on the street resulting in greater risk of crime and vandalism.
• All of the above result in a declining tax base for town and a greater tax burden on remaining homeowners.

The key goal for township elected officials should be to enact policies that help to stabilize neighborhood market values and prevent a downward cycle of decay. Possible responses might include:

• establishing policies that discourage lenders from boarding up properties,


• pressuring banks and managing agents to upkeep vacant REO properties,


• rapid response to concerns from neighboring homeowners about maintenance issues, abandoned pets, etc,


• providing an added police presence, where necessary.


• encouraging REO lenders to sell properties to owner-occupants rather than absentee speculators and landlords.