High Interest Loans Cheat Consumers and Bring Down Neighborhoods

Rebecca Castell

Contributor

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High interest loans, offered by lenders to consumers with bad credit or offered as a way for home owners to refinance their homes are now also being blamed for suburban plight. Owners facing foreclosure often abandon their homes fearing there is no way to prevent the loss of the property. Once abandoned, these houses deteriorate quickly, resulting in blighted areas of once bright neighborhoods.

To fight the image of dispair, neighborhoods are resorting to fixing up the outside of these houses or taking the homes down completely. Midwestern suburbs are already facing declining populations and need to fend off the image of abandonment. Some areas are tearing down dilapitated homes to make way for green space.

Regardless of whether neighborhoods can hide the effects of foreclosure, it is clear that the after effects of many years of high interest loans will seen for many years.