Foreclosures continue to rise in San Diego

The Center for Policy Initiatives, a local think tank, released a report Thursday with some startling figures.

The report averaged the number of foreclosures from 2008 through 2010, and used that number to project foreclosures through next year.

“We projected the number of foreclosures in the five years since the foreclosure crisis began. In the zip codes in the City of San Diego we projected there will be 57,000 foreclosures,” CPI Researcher Corinne Wilson said.

While foreclosures dropped this year from last year, that's been attributed to the backlog of paperwork. Once that's caught up foreclosures will spike again.

Of the 34 zip codes cited in the report, the two highest foreclosure areas were south of Interstate 8.

By the end of next year more than 86,000 homes will have been foreclosed in these neighborhoods.

This will have a severe impact on city finances.

“As home values decline so do property taxes. This is money that is not being collected to fund our schools, and our city services. We estimate the property tax loss at $117 million,” Wilson said.

Gabriella Castellanos, who lives in the Barrio Logan area, says the empty houses in her neighborhood draw vagrants, the homeless, drug and crime problems, all of which require city services to handle.

“We estimate that the cost to local government will range from $137 million at the low end to $155 million at the high end,” said Wilson.

And lastly, responsible home owners nearby are watching the value of their homes continue to drop as foreclosures increase.

Categories: KUSI