10 Million Vacant Properties in the United States

10 Million Vacant Properties in the United States

Recently I was canvassing one of my target neighborhoods I hadn’t been to in several months. I noticed several homes had all the signs of being vacant—brown grass in the front yard, 2-ft high weeds, accumulation of newspapers on the driveway, cobwebs around the front door.

When I got back in front of my computer, I looked up the vacant homes to see if these were bank-owned. I discovered most were owned by individuals who had abandoned their homes, or investors without tenants and left to neglect.

I wish I had gotten there sooner. Even so, many homeowners are afraid to seek out help when they are facing foreclosure. Maybe because they don’t know there is help available, such as a short sale, or because they are embarrassed at their situation. It saddens me that these homeowners moved out of their homes when it wasn’t necessary. They probably didn’t know they didn’t have to leave.

 

Fannie and Freddie spent $953 million to maintain vacant properties in 2010.

Many cities are passing blight ordinance laws to punish mortgage holders of vacant properties for not maintaining them. I know in Riverside County California there is a blight ordinance for brown, un-kept front yards, overgrown weeds, and green pools. After 30 day notice to remedy, the penalty is $1,000 per day.

Fannie and Freddie are being penalized by cities for not maintaining vacant properties. Fannie and Freddie’s position is the cities are over-reaching their authority because many of the properties that are vacant, Fannie and Freddie do not own.

What will Fannie and Freddie have spent in 2011 to maintain vacant properties?

This is why since the mortgage meltdown I’ve been an advocate for principal reduction so that homeowners can continue making payments and stay in their homes. I know the con side is it wouldn’t be fair to those who do pay their full amount. If you look at the alternative, vacant homes cost local government and communities and taxpayers money they don’t have.

It’s possible principal reduction may be coming soon, because a study result shows  Fannie and Freddie could save $1.7 billion by reducing principal for some homeowners. Is it enough? Probably not, but if not principal reduction, then short sales are a better option than foreclosure. It is a win-win for all of us: homeowner/borrower, lender, Fannie and Freddie, communities, and taxpayers.

Read the 100+ page report, “Vacant Properties,” by the U.S. Government Accountability Office, dated November 2011

Pamela Seley, REALTOR®
Short Sale Resource | CA DRE lic # 01824145
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Pamela Seley, REALTOR® has helped homeowners in SW Riverside and San Bernardino Counties, California, by negotiating short payoffs with the following lenders and servicers:

Bank of America * Chase * CitiMortgage * EMC Mortgage * GMAC * HSBC * Indymac (now known as, One West Bank) * Midland Mortgage * SLS Specialized Lending Servicing, LLC * Wachovia Mortgage * Wells Fargo * World Savings Bank  

All information deemed reliable, but not guaranteed. Copyright © 2009-2011 by Pamela Seley, REALTOR® | CA DRE Lic # 01824145