When VA foreclosures happen in neighborhoods it can cause problems. The surrounding homes often lose their value. This is because the house will usually go unattended and have weeds in the front lawn and go without maintenance for months. The bank doesn't have time to take care of the lawn or the money to spend. Many people don't want to buy a home that looks trashy either.

Another problem with the way VA foreclosures have an impact on the economy is when crime occurs. It is very common today for criminals to steel copper piping from homes to sell it for money. They may steel aluminum siding off of the side of a house, windows, and anything else they can steal from the home. If appliances are left in the home then they may be removed from the home also if the criminals break in.

When VA foreclosures occur it is also common for problems to occur when homeless move into it. It may be really cold outside and the homeless may recognize that there is a home that is vacant down the street. They may break in and make it their new domain. This has an impact on a neighborhood when there are many transients living in the area and there is usually nothing they can do until the home is sold.

There are many ways that VA foreclosures have an impact on the local community. When homes go sitting for a long time the bank will not pay someone to take care or provide maintenance to the home. A home sitting uninhabited attracts criminals, transients, and brings down the value of the entire neighborhood.