{Sorry if this topic was explored here before}
As I understand the local rumors, my neighborhood has just had its 4th home sold by way of foreclosure at about $50,000 USD below what I owe on my mortgage; comparable homes as the real estate folks say. There are several other foreclosed homes vacant. A few up for sale, but remain unsold.
Now, my local real-estate property tax authority now and then sends me a letter stating the estimated "fair market value" and the legally binding "Tax Assessment Property Value" on my home. My understanding is the Tax Assessment value to be some percentage of the estimated fair market value, call it 55% for purposes of this thread but it could be higher.
Obviously my property taxes are going to go down. But the schools are going to be without needed money to operate. The local city and county governments are going be hurting also. I live where I do because I want full time fire-fighters, emergency services, full time police patrols, fully funded schools with computer technology (read $$$$), plus curb side trash pickup. If I didn't want those services, I could have purchased a home elsewhere.
Now my question: since the buyers of the aforementioned homes are rental agencies fronting for property investment corporation(s), plus the down grading of city and community services because of lower tax revenues, where is the breaking point for me to cut back on exterior up keep of my home?
If the only buyers of the foreclosed homes is rental property investors, does that mean my neighborhood is a working-to-middle income slum?