Do Mortgage Loan Defaults Cause Higher Crime in San Diego?

By Sheryl Landrum
Local Lender Columnist
Sep 24, 2008
San Diego is no stranger to a record number of home loan defaults in the past few years. When home equity was jumping 200-300k a year, most homeowners took advantage of low interest rates, creative financing, and the ability to borrow against their home equity. However, when mortgage interest rates climbed, and home values declined, homeowners left behind their houses in droves--making San Diego one of the most popular cities facing a record number of home foreclosures. With so many abandoned properties, you would think that crime would be rising in San Diego; however, quite the opposite is true.

Higher Mortgage Defaults Are NOT Causing Higher Crime in San Diego

The City of San Diego's FBI Index Crimes-First Quarter Comparisons 2006-2008 shows an actual drop in burglaries and most other major crimes as well. Property crime was down 5.3% from 2007-2008 and down 13.4% from 2006 to 2008. With so many foreclosed properties on the market, why isn't crime higher in San Diego?

Loan Defaults May Have Inspired Neighbors to Watch for Crime

Foreclosures and abandoned properties drop home values and home equity. To help protect their investments, many San Diegans discuss how they are addressing homes left by homeowners unable to refinance out of bad mortgages. Neighbors are joining together to police their neighborhoods against crimes against abandoned homes and are joining together to maintain yards that are suffering from neglect. In San Diego's beautiful climate, there are numerous outdoor activities enjoyed by the masses. One of these is walking and people are beginning to notice the tell-tell signs of an abandoned property. What are some of the signs of a home deserted?

• One of the first things to go when a home is in mortgage distress is maintenance. If a home that was generally well tended begins to look shoddy, keep your eye out for further degeneration.
• Then there is watering. When property owners can't afford their home loans they generally can't afford their water bills either. Unfortunately in San Diego, water doesn't come cheap.
• Papers not picked up or trash cans not left out on trash day are also red flags for possible mortgage problems.

Remember that while crime is statistically higher in neglected neighborhoods, foreclosures can affect us all. San Diegans do seem to be fighting back against its record number of mortgage defaults by attempting to maintain properties in distress. Hopefully some of these thoughts can help you if your area is being adversely affected by loan defaults and abandoned homes as well.

About the Author
Sheryl Landrum is a Loan Officer with General Mortgage in San Diego, California and a freelance writer specializing in mortgage issues.