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Foreclosures: An opportunity for Neighborhood dispute resolution

By
Real Estate Broker/Owner CalBRE# 01433049

fence through carport


Right or wrong, I'm seeing more and more folks using the "opportunity" of a foreclosure to solve long running disputes with their neighbors. Have you ever had a neighbor who wouldn't prune the tree that was leaning on your fence? How about the neighbor who decided to do some landscaping and captured part of your property in the process of doing it?

When a home goes into foreclosure, and that pesky neighbor is gone, is it OK to take care of these issues while the home is owned by an entity instead of a face that you have to encounter day after day? Some seem to think so.

In one case, a neighbor who had had a decades long dispute about a carport being built across property lines, decided to rent a jackhammer and erect a fence ... through the carport. How is that for a message to potential buyers that there may be some issues to deal with if they buy this house?

In another case, a neighbor had repeatedly asked for a palm tree to be taken down. The dead fronds were dropping (from 40 feet) in her yard causing quite a bit of damage. When she saw my "for sale" sign go up, she called me and showed me her patio area. It was obvious that if one of those fronds were to hit someone they would end up being badly hurt.

I sent an e-mail to the asset manager about this issue and made sure I sprinkled a few words such as "damage" and "liability" and poof ... two weeks later the palm tree was gone.

If I had a dispute with a neighbor and one day found their home vacant, would I try to take care of an issue while the bank was in possession? You bet. Wouldn't you?

 

Posted by

 

Cynthia Larsen (707-332-2560) is an independent real estate referral broker in Sonoma County, California as well as a Certified Probate Real Estate Specialist.

CA Broker License #01433049

Comments(37)

George Bennett
Inactive - Port Orford, OR
Inactive Principal Broker, GRI

Thanks for posting. I haven't encountered this method of dispute resolution but I definitely see its merits. I hope the fence builder has a sound legal argument. If not, then this could be an expensive object lesson for him.

Dec 03, 2011 05:18 PM
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Congrats on the feature! I think that if I had a foreclosure property and a dispute in my or a clients neighborhood I would contact the listing agent or property manager. I would not advise the renting of a jackhammer. What are some people thinking? The legal way to dispute resolution is much better than the random building of fences. Thanks for sharing. I need the laugh.

Dec 03, 2011 05:20 PM
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Cynthia,

Good post. Congrats on the feature.

That picture was priceless. Way to go, neighbor. Let's tell the new buyers we are cantankerous and difficult before they even look at the house!!!

Phil

Dec 03, 2011 08:40 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Encroaching on neighbor's properties is a big one. Not sure the fence is going to get them the result they want. For all the time and money they spent putting up a fence they could have contacted an attorney. Thanks for sharing, the picture is too funny. 

Dec 03, 2011 09:30 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Absolutely a good time to take care of nagging issues, but I wouldn't recommend just going ahead and doing it without the current owners OK.

Dec 04, 2011 12:12 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Cynthia, Hard to imagine taking a jackhammer to the property.  That's a case of you'd better be double dog sure you know EXACTLY where the property line is, or you may find yourself in more trouble than it's worth.

Dec 04, 2011 12:49 AM
Keith Lawrence
Christie's International - Mahwah, NJ
ABR, SFR

I see this all the time with vacant properties, especial REO and Short Sales.  On one of my short sales that was vacant the neighbors were dumping their garbage on the property. 

 

In regard to the fence through the car port.  Did the owner get a permit from the town to erect the fence? If not let the town deal with them.

Dec 04, 2011 02:00 AM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Cynthia - The longer I belong to Active Rain the less I think I know about the world of real estate. The photo of the new fence installed through the carport raise more questions in my mind than it answers, but I guess that is the point.

Dec 04, 2011 02:48 AM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Our neighborhood did that with a house who's yard had gotten way out of control with pergolas and gazebos, and undulating patios and a fountain. I think they were in the hard scape business and wanted to make sure they had an example of everything they could do. Oh, and there was a waterwheel and a little light house. I've seen more tasteful mini golf parks. When they abandoned the property all that stuff magically disappeared....thank goodness, we have a lot of little kids around and unsupervised water features can be a hazard.

Dec 04, 2011 03:03 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Tni - the home with the fence was purchased by a flipper with their eyes wide open.

Steve - extreme, yes. But this had been a decades long property line dispute. Can't say I blame the guy.

Ron - I ended up a hero with the palm tree ordeal. The neighbor now sees me as the agent who can get things done.

Charita - believe it or not, the home was purchased about a month after the fence went up.

Suzi - this has been about the only positive side of foreclosures that I have witnessed. I would never have realized it until now.

Tim - if I had a dispute with a neighbor and all of a sudden the house was vacant and the grass was turning brown ... I'd be over there with whatever tool I needed.

Anthony - I like that ... a silver lining.

Doug - the home with the fence is on the most expensive street in Santa Rosa. It became a bargain with that fence ... an opportunity for someone who knows how to deal with it.

Melody - exactly!

George - the fence builder had a legal argument. He had already spend $38,000 fighting the issue and had been to court. The court ruled in favor of the fence builder, but the owner opted for foreclosure instead of paying the $45,000 in restitution and removing or downsizing the carport.

Angel - the fence builder was at the end of his rope. When he saw the for sale sign he needed to make a statement to any potential buyer.

Phil - LOL, the fence builder is a decent guy and neighbor, I'm sure ... as long as that carport is removed from his property. Can't say I blame him.

Pamela - the fence builder had already done the attorney route ... this was plan B.

Gabe - the current owner was Bank of America when this fence was erected. Wan't to change your comment? LOL.

BLiz - Double Dog Sure ... Love it!

Erica - I'm seeing this more and more as time goes on.

Keith - garbage being dumped is a sad reality ... it's usually the period of time where an agent hasn't been assigned to a bank owned property. The fence ... the City was well aware of this dispute for decades.

Brian - glad you enjoyed the photo ... I read about the issue in my local newspaper and had to go see for myself.

Leslie - magic is a wonderful thing, isn't it? You made me laugh about them having to have an example of everything they do. How about a front yard show room?

Dec 04, 2011 04:56 AM
Steve Warrene
Your Town Realty - Lower Burrell, PA
Pittsburgh Realtor North and East Pgh.

Cynthia, I have seen alot of things that are obstructing property lines but never a brick car port that much over the property line.  As for making the physical alterations when the bank takes ownership... That is always going to happen regardless and it is necessary for safety reasons and to fix what some unethical neighbors do.  As we all know they are out there.

Dec 04, 2011 06:19 AM
Danny Dietl
www.dannyrealestate.com - Minneapolis, MN
Buy, Sell, Lease - iMetroProperty.com

a fence through the carport...wow! Interesting take on a bad situation. Change always creates opportunities.

Dec 04, 2011 06:45 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Steve - I've never seen this type of encroachment either. This dispute has been going on for over forty years. Enough is enough.

Danny - this is wild, isn't it?

Dec 04, 2011 07:04 AM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

I suppose it's human nature to see a situation like this as an opportunity to resolve a lingering problem in our favour. People tend to go overboard though sometimes.

Dec 04, 2011 07:35 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Malcolm - it may seem a little overboard, but the fence builder has fought this for many years, has spent $38,000 in legal fees, won a court settlement that was never paid and for what? Nothing. So he took matters into his own hands which made public a decades long dispute that the City should have settled long ago. Seems extreme, but I know how I would feel ... livid.

Dec 04, 2011 10:16 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Cynthia - I am amazed that anyone could get title insurance to purchase the house, until after the carport issue was resolved -- since technically there was a lien on the property for the value of the judgment - unless in your area the lien is vacated by the foreclosure.

Dec 05, 2011 06:53 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Steve - that is a VERY good point, I hadn't thought of that. I know there was a court date regarding the issue and the bank (Bank of America) was strongly encouraged to attend. Maybe something was worked out during that meeting as escrow closed about 10 days later.

Dec 05, 2011 10:12 AM
​​Elise & Glenn Groves, Mortgage Brokers ​First Priority Financial, Inc.
First Priority Financial Inc., NMLS# 3257, ​Elise NMLS #255824, Glenn NMLS# 1124642 - Santa Rosa, CA
Mortgage Broker,Banker, FHA, VA, Conv, Jumbo - Pur

Cynthia... that carport issue was a doozy.  I remember when that house was on the market years ago, before the neighbor next door with the jackhammer arrived. Amazing that happened though, all for a few feet!

Dec 06, 2011 04:59 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Remember the good old days when a featured post would get 75 to 100 comments? This post deserved much more... 

Dec 11, 2011 01:48 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Elise - it will be interesting to see what happens, I'll be driving by every once in awhile to check it out.

Paul - thanks :) I guess it just didn't strike a chord

Dec 12, 2011 03:49 AM