Friday, September 3, 2010

Let's Do a Little Math!

Since the launch of Counselor Direct on August 9th, over 328 homeowners have used the service provided by Family Services, Inc. to take the initiative to save their homes.

If we assume even 50% of them complete their application and we have an average success rate of 85% that means 139 of those homeowners will be able to stay in their homes! The positive effect that this has on the South Carolina Community is even greater! Here’s how:

Studies show that the cost of a foreclosure on a community ranges anywhere from $30,000/house to upwards of $70,000/house. When foreclosure happens it immediately affects everyone in the community- surrounding property values decrease while city costs increase. When property values go down tax revenues decrease so in order to make up for that loss in tax dollars the town has to increase taxes. Increased city costs include, but are not limited to, the increased need for police surveillance and burden on fire departments, demolition costs and higher demand for city social service programs.

What this means is that at the low end, Counselor Direct and the services provided by Family Services, Inc have already likely resulted in at least $4,170,000 in cost savings to be passed on to all South Carolina residents!

Of course we must take into account the average cost to save a foreclosed home which studies show is between $300 and $3,800. We will assume the high end of $3,800, giving us $528,200 in costs. This means that we will likely see a net savings of $3,641,800 just from the first month of our implementation of Counselor Direct.

Here’s to South Carolina homeowners, the community, and a little math!

1 comment:

  1. Thanks,

    Does this still apply for today in South Carolina? Are there any new updates about it? I am sure doing the math these days is a bit different as the market has a huge change since 2010. sc real estate license renewal