Foreclosures, particularly when they are geographically concentrated, can diminish the values of nearby properties.3 Many foreclosed homes are neglected or abandoned, as legal proceedings or  2  National and state level homeowner vacancy rates are available on the U.S. Census Bureau website at www.census.gov/hhes/www/housing/hvs/charts/index.html.
3  See, for example, John Y. Campbell, Stefano Giglio, and Parag Pathak (2011), “Forced Sales and House Prices,” American Economic Review, vol. 101 (August), pp. 2108–31; Dan Immergluck and Geoff Smith (2006), “The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values (PDF),” Fannie Mae Foundation, Housing Policy Debate, vol. 17 (1), pp.