[tag]Foreclosures[/tag] have devastated whole neighborhoods in many cities, but the real impact on the finances of cities is still to come. Treasurer’s offices all over the country are bracing for the day when lenders stop paying the taxes on many properties in the worst hit neighborhoods. Cities that counted on the continued growth will have to scramble to close revenue gaps as tax growth flattens. Even if lenders sell off still viable homes to new owners, those homes could still bring in lower tax revenues. Many of these homes will turn over only at fire-sale prices and the new owners will want assessments redone. Existing homeowners in areas with plunging values will ask for reassessments too.

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