Skip navigation
Watchlist Sponsored By :


Current DateTime: 12:04:41 10 Feb 2012
LinksList Documentid: 35800934

Current DateTime: 12:04:41 10 Feb 2012
LinksList Documentid: 35800936

Current DateTime: 12:04:41 10 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/10/2012 12:06:24 PM

MOST SHARED


Current DateTime: 12:04:43 10 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/10/2012 12:06:45 PM

MOST POPULAR


Current DateTime: 12:04:43 10 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

Vacant Homes Posing New Threat to Cities

Published: Tuesday, 25 Mar 2008 | 7:50 AM ET
Text Size
By: Reuters

On Lagrange Street in New England's second-largest city, two brick apartment buildings stand side-by-side in varying stages of decay -- boarded up, "No Trespassing" signs affixed, paint peeling.

Foreclosured Home
David J. Phillip / ASSOCIATED PRESS

Across the street, a condominium complex is on the brink.

Three of its eight apartments are in foreclosure.

Like many cities in the United States where the home vacancy rate has scaled its highest since records began in 1956, the former textile mill city of Worcester in Massachusetts is turning to the courts to fight back.

Their target: banks who abandon properties and who leave behind a glut of empty, dilapidated houses that draw crime, cut tax revenue and depress nearby property values in a market already in a tailspin.

"This is the trenches here. We've got to stabilize our community," said Worcester city manager Michael O'Brien in a sidewalk interview outside the foreclosed condominiums on the quiet street in a Hispanic neighborhood.

The city of 175,898 people, a munitions depot during the Revolutionary War, offers a window into how cities are grappling with a wave of foreclosures that has pushed the homeowner vacancy rate to a record 2.8 percent in the fourth quarter of 2007 -- or about 1 million homes.

Like many U.S. mayors and city officials, O'Brien blames "predatory" lending practices prevalent in the U.S. property boom for the lion's share of about 4,220 mortgages in his city that are either in, or at risk of, foreclosure.

In February, he began asking judges to assign property managers to buildings at the expense of the mortgage companies.

The idea is to stop tenants from being abruptly tossed out of a foreclosed home and to provide enough basic maintenance to keep it from getting condemned.

Other cities are pursuing even more radical measures.

CNBC HIGHLIGHTS

  • Alternative Investing: A CNBC Special Report
  • Marketing clichés aside, sometimes diamonds are for investing.
  • Clint Eastwood
  • Actor Clint Eastwood responds to critics over the Chrysler Super Bowl ad and all the controversy.
  • Attention, online shoppers. The days of tax-free online shopping may be coming to an end in many states.
  • Nordstrom
  • The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
  • Airdale Terrier
  • Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
  • Jennifer Aniston and Justin Theroux home
  • What kind of homes do celebrity couples share? Here’s our updated list. Take a look.


Current DateTime: 09:37:11 10 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 09:37:11 10 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 11:35:14 10 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 09:37:11 10 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters