One of our readers asked the following question about the cost of foreclosures.

• "I would like someone to explain where the costs of a foreclosure go. It was reported on TV that the average cost is $75,000.00 per house. Why so much and can someone breakdown who gets the money. Legal, recording fees, advertising, etc."

A report by the Joint Economic Committee of Congress estimates that the average cost of a foreclosure, to the homeowner, lender, local government, and neighbors (whose homes decline in value), is $78,000. By contrast, preventing the foreclosure would cost $3,300 per home on average. Here's how the report breaks out that figure among various "stakeholders":

• Homeowner: $7,200
  Lender: $50,000
  Local government: $19,227
  Impact on neighbor's home value: $1,508
  Estimated total cost of foreclosure: $77,935

Homeowner: To me these costs might not even include everything, it might be more. The homeowner had the cost of moving in and moving out. Some disruption to normal working hours (and pay) if they still have a job and the loss of equity might be far greater. If you only lost 2% of a $400,000 home, you would have lost $8,000.