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The untold story of foreclosures … houses that are falling apart.

By
Real Estate Broker/Owner with Richard Weisser Realty

 

Houses are losing value due to lack of maintenance.There is plenty of finger pointing when it comes to the question of responsibility for the current housing crisis. And there is plenty of blame to go around.

But rarely is anything said about the decline in market values and the loss of equity that is the direct result of lack of maintenance or the failure to perform needed repairs. Many of these houses became unsellable simply because the occupants did not take any proactive action to protect their investment and the houses are literally falling apart.

And since they can't sell by conventional means, often these homes will eventually face foreclosure.

And often, severe damage is the result of a relatively inexpensive repair that was simply ignored as the problem escalated day by day to the status of “incurable.”

Often, a short list of weekend chores will easily address most minor maintenance issues. It does take time and a little effort and the recognition of responsibility for the condition of one’s own property.

The alternative is a house doomed to perish in the tsunami of foreclosure.

 

Comments (32)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Of course, the worst of these is anything to do with water.  Water is insidious and leads to many additional problems. 

When a bank takes over a property it needs to pay more attention to securing the property from intrusion, which is usually their focus. 

The damage may come from within.

Nov 05, 2010 02:06 AM
Michael Simcock
Coldwell Banker (Elk Grove, CA) - Elk Grove, CA
Elk Grove, CA Realtor 916 425-1084

The lack of maintenance has really made some of our housing stock a "handyman's special". When the bank is going to take your home away, who wants to put more money into a sinking ship?

Also our area has had a lot of investment properties go through the process. Between the tenants and landlords, there is some work that needs to be done in order for these homes to see the full potential they have.

I love to see investors come in and bring them back to like. It improves the entire neighborhood.

Nov 05, 2010 02:21 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

Some towns around here are starting to take agressive action on vacant homes looking shabby. Neighborhood values are being affected.

Rich

Nov 05, 2010 02:24 AM
Don MacLean
New England Real Estate Center Inc. - Easton, MA
Realtor-Homes for Sale- Easton, Mass 02356

If your in it ,take care of it.

As you said most repairs are minor that head of the larger ones.

If your not sure about it take a picture and head to Lowes for some FREE advice.

Enjoy the day

Nov 05, 2010 02:28 AM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

I find many homewoners, even those who can well afford, just simply "live" in the home and just do not wish to be troubled by proactive maintenance and care.  As you know, issues then become from a simple fix to a major repair.  Like you, I wonder where their common sense has gone.  Too busy to take time out ... I'll get to it.  The price one pays for poor decisions.

Nov 05, 2010 02:30 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Richard - And as we go into another winter, vacant homes will suffer frozen pipes.  That's why those considering purchasing a foreclosure should always get it inspected.  The potential for problems is significant.

Nov 05, 2010 02:36 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Richard.....if the banks hired a handyman to address some of the small issues, they'd receive higher bids on their properties....

Nov 05, 2010 02:44 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Its all about deferred maintenance as you stated. And vacancies just exacerbate the issues!

Nov 05, 2010 02:52 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Richard, I am always talking about this. Homes left vacant fall apart at a very rapid rate, it is amazing how fast things go wrong. The banks are bringing the market down even lower when they allow this to happen. Shame on them.. shame.

Nov 05, 2010 03:00 AM
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Well-said.  It saddens me to see the condition of so many homes that could be really nice homes but have just been left to fall apart.

Nov 05, 2010 03:09 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.
Richard, I believe that 30-40% of the poeple who purchase a home, are not qualified to maintain one. Nor do they have the resources to hire someone to do the maint.
Nov 05, 2010 03:32 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

I think that one of the points that I am trying to make is that it is easy to blame the banks, but not the owners who let the property go long before foreclosure.

That's what made the property unsellable, and that's why it was eventually foreclosed.

After that, we all know what happens when they sit empty!

Thanks for the great comments.

Nov 05, 2010 03:32 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

I added this line to the post:

"And since they can't sell by conventional means, often these homes will eventually face foreclosure."

I hope that clears up my rather vague premise!

Nov 05, 2010 03:36 AM
Glenn Roberts
Retired - Seattle, WA

@William #23 - There should be a 4 year high school course, one hour per day, in home maintenance, but that aside, when home values were going up, part of the reason was that people improved their homes because they saw value. Now with value down they see more value in the boat, motorcycle or season lift tickets at Mt Whatever. Back to the high school thing. Teach skill and values.

Nov 05, 2010 03:50 AM
Chris Alston
Chris Alston (Keller Williams Realty, Silicon Valley, California) - Campbell, CA
Silicon Valley, California

Great post, and you are sooooo right!  Maybe a good investment for flippers coming soon?

Nov 05, 2010 04:05 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

I have been in some houses that as soon as I open the door and am hit with the extreme mold smell, I turn right around and get out.  Some of these homes are in such a bad state of repair that they are not even safe to show.

Nov 05, 2010 04:05 AM
C Tann-Starr
Tann Starr & Associates, Inc. - Palm Bay, FL

Featured @ Club Chaos

Nov 05, 2010 05:02 AM
Bryan Robertson
Los Altos, CA

This is a huge issue!  There is one short sale that is transitioning to REO that has gone from being a beautiful, completely remodeled home to having bits of roof falling off, yard completely overgrown, and more faults.  The bad part is that the home was built but a sub-standard builder and it would be a great home, priced well, if it were done right.

Nov 05, 2010 05:04 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Richard , I'm reading a lot of short sale discussions lately that seem to be making a good case for the lack of consistency in the approval process...where by dooming a property for a foreclosure and lowers prices.

Nov 05, 2010 05:48 AM
Mary Nack
Jameson Sotheby's - Chicago, IL
Vice-President, Sales

Last week, I saw a two family REO that had been completely rehabbed in 2005. The water main was broken and water was bubbling up leading to 2" - 3" of standing water in the basment. Soaking all the abandoned debris that had been left (incl large pieces of furniture) leading to a mold problem you wouldn't believe on the first floor.

Plus the kitchen cabinets had been ripped off, bathrooms torn up, flooring warped from the humidity. Unbelievable...

And totally typical of an REO in The Big City. :-(

Thanks for sharing.

mary!

 

Nov 05, 2010 10:38 AM