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Atlantic City area led US in Q1 foreclosures
2015 Apr 28, 7:03am 748 views 3 comments
by zzyzzx follow (9)
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Strategist
2015 Apr 28, 7:51am
Atlantic County, where struggling New Jersey gambling hub Atlantic City sits, led the United States in foreclosures in the first quarter, putting pressure on its credit rating, Moody's Investors Service said.
The county's foreclosures, which stem from the meltdown of Atlantic City's casino industry, "will suppress property tax collections for municipalities and be a drag on future tax base growth in the county" over the next year, Moody's said in a credit comment late on Thursday.
The casinos had made an offer to the city they could not refuse. What does the city do? they refuse. Now they have even less.
That's the trouble with socialism......they don't hesitate to kill the "goose that lays the golden egg"
They just don't learn.
Strategist
2015 Apr 28, 8:04am
Atlantic County municipalities could hold tax lien sales on foreclosed properties, but there is no guarantee enough buyers would surface, especially if Atlantic City's economic distress scares them away.
Since day one, the money from the casinos never made it two blocks from the beach. A.C. was a ghetto before the casinos came in, and is still a ghetto today!
The city could house the homeless in the casinos. - If they don't have homes, let them live in the Taj Mahal. :)
zzyzzx
2015 Apr 28, 8:13am
A.C. was a ghetto before the casinos came in, and is still a ghetto today!
Still safer to walk through than downtown Baltimore.
It's all Obama's fault!!!
http://www.cnbc.com/id/102618664
Atlantic County, where struggling New Jersey gambling hub Atlantic City sits, led the United States in foreclosures in the first quarter, putting pressure on its credit rating, Moody's Investors Service said.
The county's foreclosures, which stem from the meltdown of Atlantic City's casino industry, "will suppress property tax collections for municipalities and be a drag on future tax base growth in the county" over the next year, Moody's said in a credit comment late on Thursday.
The property tax base in Atlantic City itself has shrunk by two-thirds in just five years, down to a projected $7.35 billion for 2015, because of the reduced value of casinos.
Moody's rates the county Aa2 with a negative outlook.
According to RealtyTrac, the county's foreclosures in March more than doubled to 498 from 186 a year earlier and were up about 80 percent from February.
For the first quarter, the greater Atlantic City area had one foreclosure for every 113 housing units, the highest rate in the United States.
Atlantic County municipalities could hold tax lien sales on foreclosed properties, but there is no guarantee enough buyers would surface, especially if Atlantic City's economic distress scares them away. If that happened, the municipalities would have to carry tax liens for years, Moody's said.
Municipalities also bear the risk of any tax delinquencies, since they must remit the county's share of property taxes in full, no matter how much they actually collect.
That insulates the county from the immediate shock of its declining tax base, a positive mark for its credit rating since it gets most of its revenues from property taxes, Moody's said.
The county also houses several wealthy beach communities, including Margate, another credit positive, Moody's noted.
#housing