Orphaned homes.

[badmomma]

These are the many homes that you see sitting empty in the various parts of town or the countryside. An article that I was reading says that they do have owners who are supposed to be taking care of them.

In Buffalo and other Rust Belt cities, the problem has been particularly acute, because in many cases banks are abandoning the houses, too, after determining that their value is so low that it's not worth laying claim to them. When city officials try to hold someone responsible for dilapidated properties, they often find the homeowner and bank pointing fingers at each other. Indeed, the houses fall into a kind of legal limbo that Cleveland housing attorney Kermit J. Lind calls "toxic title." While formal ownership remains with a borrower who has fled, the bank retains its lien on the property. That opens up a dispute over who is responsible for taxes and maintenance. Even when lenders do complete the foreclosure, they may walk away from the property, leaving it to be taken by a city for unpaid taxes, a process that can take years. Orphaned properties quickly fall into disrepair, the deterioration sometimes hastened by vandals who trash the interiors, light fires and rip out wiring and pipes to sell for scrap. Squatters or drug dealers may move in.
The impact goes far beyond the defaulting homeowner, as neighbors and entire communities confront a spreading blight. Vacant residences deprive cities of tax revenue and can cost them thousands to maintain. A 2001 Temple University study in Philadelphia found that simply being within 150 feet of an abandoned property knocked $7,600 off a home's value.

Its a sad state of affairs when the banks take a persons home. Its even sadder when they leave it to rot. What is the point of taking any action at all if all your going to do is to let the homes decay.
They wanted their money and weren't getting it so they threw the people out and then what. I think that if they are doing this sort of thing then the government needs to get proactive and do some investigation into why the homes are being let go like this. All around this is greed and I find it dimaying that my home value will decrease due to a banks inability to manage the properties that it now owns.

[flippinout]

It seems to me that the banks would have been better off extending the owners a little time to try to make up the mortgage payments they had missed.

As it is, there are thousands of homes sitting empty across the nation and not bringing anything in the way of revenue to the banks that repossessed them. Plus, as you said, no taxes are being paid on the properties and by rights, the banks or whomever now own those homes should have to pay taxes on them just the same as any other home owner would have to do.

And now it seems that since this all occured, the repossessions, that it is so much harder to obtain a loan with which to purchase a home and its just as hard for people with bigger incomes to get a loan as it is for anyone else.

[realestatehound]

The banks have to pay the taxes just like anyone else does. In most cases the homeowners move out on their own. I probably don't see one or two families still living in homes going to master commissioners sale out of 30. These families can usually live in these homes for as much as a year before it is foreclosed on rent free and now some banks are paying them to stay in the until it is foreclosed on. One of these programs is called cash for key's. They are trying to get the families to move out and not destroy the homes when they move. I think they will give them up to $750 to stay in the house and keep all the utilities on and take care of it.

[badmomma]

Well thats a good solution to a huge problem. I know I would be happy to have a bank pay me to stay in my home for a while when I could no longer afford to keep it.

I am sure that in many cases the people aren't just loosing their homes they are probably going hungry too. I am happy to see that at least a few banks are thinking about options and trying to keep the homes in good condition no matter the cost. Kudos to them that try.

[realestatehound]

Most people think that families that loose their homes to foreclosure are all trash. I have done close to 50 short sales to try and save these families from foreclosure and 98% of the time it is good people that have either lost their jobs or have hugh medical bills. Although you wouldn't know it by the way most foreclosed on homes are trashed. The majority of these people really are having to make the decission of whether to pay bills or buy food for their kids. But our government continues to give billions of dollars to every country in the world, but they don't help the Americans who have worked and payed taxs all their lives. I think it's time that we as Americans need to stand up and tell the elected officials to stop helping the world and help us. I know that that sounds cold but I worry more about Americans than the rest of the world. It's time for the silent majority to stand up and be heard and the the mouthy minority to shut up. Every night I see ads begging for money to help the poor mistreated animals and the starving kids in foriegn countrys, but I have never seen an ad to help the poor starving families in America. Well I guess I've vented enough, but I hope that you folks agree with me and will pray for the American families and pester your elected officials.

[flippinout]

I agree with you 100%, there is no need for anyone in America to have to go to bed hungry and there are solutions to these many problems if the powers that be would just break down and implement ways for us all to live better.

We used to be the wealthiest country in the world, can we still say that today? I dont think so. Everyone wanted to live the American Dream. And now its becoming a nightmare.

[loumatt]

Originally Posted by badmomma

I think that if they are doing this sort of thing then the government needs to get proactive and do some investigation into why the homes are being let go like this. All around this is greed and I find it dimaying that my home value will decrease due to a banks inability to manage the properties that it now owns.

I've come to the opinion that the banks and the government are working together on this and not in a good way.

Maybe dropping property values are what the desired result is so the filthy rich, our leaders, and maybe even China, can ultimately clean up in the USA real estate market.

I came to this 'far fetched' realization when shopping for homes and saw how unmotivated the banks were to actually sell.

Is our government making it more beneficial for banks not to sell?
How about perhaps banks truely making an honest attempt to help out a struggling homeowner who could perhaps swing it with a loan modification before there is a foreclosure?

What about these programs that were offered to help the housing crisis??
I would think that the amount of homeowners actually helped is very small in comparison to the amount of tax payers money that was spent.Where is the logic?

Seems as though, for the most part, government wants the housing market to fail.

Very discouraging after you spent a lot of time,money, and worked your butt off trying to improve a property and finding along the way the value is actually going down.

Something just doesn't seem to add up except when I look at it from a swimming with sharks perspective.

Sorry for the rant but it seems honesty and integrity is dying out in our country as it slides farther and farther toward the greedy few who want everything at any cost.

Wish I could be writing about positive issues dealing with home improvements but this appears to be a real concern to me.

[badmomma]

Thank you your opinion is appreciated. It is ok to rant and let me tell you that you are not the only one to feel this way.

When I last spoke to my banker the poor woman was about in tears. You see her hands are tied they only have a few types of loans that they are actually doing and those are extremely hard to get.

She did inform us that the rules are about to change again and I don't suspect that it is going to be anything helpful to the home owner or the prospective home owner.

The government and the banks all have one thing in common take as much as you can from as many as you can and when all goes sour blame it on someone else.

[flippinout]

Something just doesn't seem to add up except when I look at it from a swimming with sharks perspective.

Sorry for the rant but it seems honesty and integrity is dying out in our country as it slides farther and farther toward the greedy few who want everything at any cost.

Swimming with sharks is a very apt description these days. And believe me you arent the only ranting about the way things are going these days.

Yes, it does seem that honesty and integrity have fallen by the way side. And our leaders seem to be lacking very badly in both cases.

The government and the banks all have one thing in common take as much as you can from as many as you can and when all goes sour blame it on someone else. Yesterday 06:39 PM

And blame it on someone else is exactly how it has always been. If they worked as hard on making new jobs for people as they do on making things so rough on us all, we wouldnt be sitting here ranting now would we?

[realestatehound]

Loumatt, you hit the nail on the head, if the president has his way and his new bill passes everyone in the real estate and lending industry are out of business. It is his goal to help China buy our country and what they don't buy he is going to give away. Check out his new bill that will do away with Fanniemae and Freddiemac and privatize it. His plan is to require higher down payments, higher closing cost and higher interest rates. Right now my bank requires 20% down to buy a home through them, well on a $100,000 purchase that's $20,000, how many 1st. time home buyers do you know that has that kind of money. The average closing cost on a Ky. housing loan is about $3,200 and he wants to triple closing cost and he wants interest at 7%. So if you buy a $100,000 house you will have to have around $30,000 cash. How many families are going to own homes if he has his way. But how many of his rich buddies are going to buy up all the foreclosed homes and rent them out for higher prices.