Big Banks Make Bad Neighbors

One of every seven mortgages taken out in Minnesota between 2004 and 2008 is currently under foreclosure.

The foreclosure crisis stretching across the nation has not missed Minnesota or our communities. There are nearly 130,000 vacant homes in Minnesota- more than double the number a decade ago.  Empty homes impact our neighborhoods and communities, and homeowners end up footing the bill when big banks move in next door.

This is very evident in Coon Rapids, a northern suburb of Minneapolis. Coon Rapids had 3,900 foreclosures between 2008-2012.

  • When houses sit empty, property values decrease by nearly 22% for all homes within an eighth of a mile.
  • Coon Rapids homeowners are estimated to lose nearly $600 million in home value as a direct result of the 3,900 foreclosures for 2008-2012.
  • While property values have declined, Coon Rapids’ property tax rate has increased 28% over the past four years.

The empty homes cost the city of Coon Rapids. The typical foreclosure can cost local governments more than $19,000 for increased costs of safety inspections, police and fire calls, trash removal, and maintenance.  In Coon Rapids these costs are estimated to be more than $35 million for the 3,900 foreclosures between 2008 and 2012.

Something needs to be done to help Minnesota and Coon Rapids. We need to hold big banks accountable for their impact on our neighborhoods. 

Join us in telling Coon Rapids to stop footing the bill for big banks next door. They need to cover the costs to the city from their foreclosures. We need a city ordinance that holds big banks accountable for their vacant properties and keeps the city of Coon Rapids prosperous and strong.

Read the facts here.  Read the full report here. 

Comments are closed.