I have a very simple plan for the bank owners of foreclosed homes in Macomb
County and theDumb decisions hurt everyone entire Metro Detroit area. In fact, it's so simple that the banks
probably won't even consider it, let alone put it into practice.

Part 1: Turn the utilities on. Pay $40-$60 per month to keep the heat on at a minimal temperature, and to keep the electricity on for sump pumps, security and a potential buyers comfort while viewing the homes.

Part 2: Hire local unemployed contractors and handymen/women to take care of urgent repairs. IE roof leaks, mildew/mold removal, broken windows.

 

            That's it. There are no more steps to my plan.


With 2 simple steps
the banks would realize thousands more in sales prices, and
local unemployed people would be gainfully employed and contributing to the economy.

I would be willing to bet that if a bank or asset manager spent $1,000 to $2,000 per home they
would then be able to receive tens of thousands more for the homes they are now trying to
dump sell.

These bank owned homes are being sold for thousands and thousands under market value
and hurting the resale value of entire neighborhoods. The banks should be doing all they can
to start reversing this process.



I wonder why they haven't thought of this?     Shame on them.




© 2008 Kris Wales RE/MAX Advantage 1, Inc. Chesterfield Township - A Macomb County real estate agent

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62 Comments on About foreclosures: How the banks can help turn around the economy and neighborhoods in Macomb County.

20 Most Recent Comments Displayed Show All

MAY
01
2008

Guys we are real estate agents, please don't give the banks any ideas.  Please let them be bankers and for us lets start thinking like real estate agents and invenstors.  Buy those reo's, fix them, and retail them for a grrrrreat profit.  Believe me better than a 3% commission.  I can tell you I did it last year with 22 reo's and made more tham selling 22 houses at 3%, much, much more.  This year my goal is 36.  Don't complain about those reo's, the market has changed and we must change with it.  Invest in real estate because we have the inside track to make a big bundle of money.  Don't give the banks any ideas, just keep it quietand buy, buy, buy and enjoy the ride

 

Rafael
7:13pm • #43
1,374,617 Points 151 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
(here in vegas)  I pretty much think it is a requirement by banks to turn on the utilities and get the major repairs done.  It is the list agent's responsibility and luckily I have not really run into some homes that were outright dangerous (after listing) or without utilities (even though the heat may be turned way down or the AC be turned way up!)
8:03pm • #44
740,583 Points 22 Featured Posts Outside Blog
I think there is a song by Supertramp.   "Dreamer, Dreamer, you're nothing but a Dreamer"  But it is a good dream!
9:20pm • #45
882,832 Points 50 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp
I normally see a title like this and know that I am going to poop on the post... but i'm not going to poop on your post.  Good job. 
9:44pm • #46
226,506 Points 5 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp
I second the idea about sending this to your local paper--or as a letter to the editor.  How about the Wayne County Community College, Wayne State, U of Detroit Mercy, Lewis Business College and University Prep Academy student papers too?  Just for starters...
10:10pm • #47
MAY
02
2008
338,841 Points 52 Featured Posts Outside Blog

Cynthia:   Thank you.  I very much appreciate it and also your kind words.  Hadn't thought of submitting this to my local paper.  It's a good idea.

Patricia:  As I'm not a listing agent of these properties I don't know that they ask for advice from those who do, but from the shape of some that I'm seeing I would guess not.

Teri: C'mon girl, let's not get greedy :-)  If I got the first 2, I wouldn't dare ask for timely responses also.

Barry:   That's quite a good analogy.  The automakers are finally starting to listen, but they've been financially hurt through those years of keeping their head in the sand and the "boom" years deceiving them. ( The area you grew up in was quite the auto worker-blue collar area.)  BTW, thank you for driving American made.   Those of us here appreciate it.

Terrie:  Thank you.

4:13am • #48
338,841 Points 52 Featured Posts Outside Blog
Gary Waters:  I've noticed that... making a bit more money should be enticing you would think.

Barb:  I'd be happy with just the first 2.  Buyers don't mind doing some of the work, in fact they'd prefer to do it if it meant getting a better deal.  But the biggies that cause mortgage issues for a new buyer should definitely be considered.


Dawn:   I hadn't even considered that.  They're called "Bank owned" regularly here, the term just sticks in our heads. 

Patti:   As I said to Dawn above, the homes are called "Bank owned" that we seem to forget who the holder of the "paper" is.  You're right though, by the time the foreclosure process is done someone else is holding on to the paper investment.  I've been reading about the new laws making its way through.   The shake up is going to felt for quite a while if it passes.


4:20am • #49
338,841 Points 52 Featured Posts Outside Blog
Mike:  I'm sure that is part of their thought process.  It also could be because it would require more people to keep track of the account payables connected to each home.

Joe:   I really could care less about the precedent it would set.  Perhaps my head is in the clouds, but I'm more concerned with the now and real families and neighborhoods suffering.   But I'm sure you're correct in your thinking of what their approach to all of this is.

Matt:   First, I'm not interested in placing blame.  I'm interested in solutions.  Second, I don't know about your area of the country but in my local area the issue came about largely because of enormous job losses.   Blame the homeowner when Mr. Smith lost his 20+ year job and then ran out of unemployment and had to leave the state to find work?  Can't do that.  Yes, the banks are in the business of lending.  I understand that.  I also understand that with a bit of effort that they could help be part of the solution.  Maybe it's my head in the sand.  If it is, I'm choking.
4:26am • #50
338,841 Points 52 Featured Posts Outside Blog
Chuck:    I understand that.  Truly I do.  I'm looking for solutions, and there can be simple solutions to reversing the disturbing trend I am seeing in my local area.  Whose benefit?  Neighborhoods, people, families.  When families benefit the economy gets stronger. 

Greg:   Thank you.  I wish they would take a step back, a deep breath and really look around.

Ida:  That's a sad story.  Hard to believe that the village hasn't stepped in and cited the home, cleared the tree and debris and placed the cost on the tax bill.   We have no choice here but to show the homes.  If we cut out the foreclosures then they would stay on the market even longer and do more harm to the neighborhoods.


4:32am • #51
338,841 Points 52 Featured Posts Outside Blog
Carole:  Thank you.  Everytime I see one of these homes I think "I bet someone who is unemployed would love the work..".   Simple things. 

Lenn:   Only one time have I walked into a home as the first example you described. Your area is very blessed. The buyer bought it.  Most are like your second example.  In fact, if you didn't have to use the special little key to open up the home you wouldn't know the difference between a HUD owned home and another foreclosure property.  The sadness gets deeper and deeper each time I see these homes.

Geoff:   The last thing I'm trying to do is fatten my wallet.  Come up and visit me sometime, I'd be happy to take you on a tour.  I'd love to show you the homes where the family that had been foreclosed upon left it in good shape, clean, and did their best in very trying circumstances.  Then I'll show you what happened months later when the "paper holders" finally put it on the market.   Frankly, my buyer clients are getting great deals and I'm happy for them.  On the flip side we have the homeowners who desperately want to sell, but have to compete price-wise with the foreclosures.  One $100,000 sold home in a neighborhood of $150,000 homes creates a neighborhood in declining values.  I agree that there is a lot more going on then what I could possibly write here.  Again, come take a look.  Even in the midst of the foreclosure crisis going on around America all real estate really is local. 
4:39am • #52
338,841 Points 52 Featured Posts Outside Blog
Esko:   Thank you.  I doubt they'll listen though.  This article was simply my way of shouting out "Wake up!".

Ida:  I had to chuckle when I read your list.  I'm also glad that you can choose to not show the homes to your buyers.  It isn't the case here.  There are so many of them that I haven't had one buyer in the last year who hasn't viewed a foreclosure.

Greg:   Ahhh, you've been to the Shores for a visit lately :-)   You know what I am getting at then.

Matt:   I'll jump over and read your article.  Thank you.


4:45am • #53
338,841 Points 52 Featured Posts Outside Blog

Rafael:   I don't know what are of the country you are in as you didn't leave your signature link..however, I will state publicly that I understand it is a great time for investors.  Investing is an integral part of our economy.  I have had an investor client purchase 2 foreclosures in the last year and was happy for them in their smart investments.  I am also very much concerned with whole neighborhoods declining and feel that with a bit of routine care that the downward spiral can be halted if not reversed.

Renee:  Not that is fascinating.  Why is it that one are of the country has this as common practice and another does not?   Amazing.

Russ:  I think you're beginning to know me too well.  Yes, I am a dreamer.

Lane:  You're kind :-)  Thank you.

Kent:  What I'd really prefer to do is take out some reporters and photographers to view these homes and let them write their own stories.  Wouldn't that be a great expose series to read?  Thank you.

 

 

4:56am • #54
Kris,
Actually I lived there before that it was in the 50s and early 60s. My next door neighbor was a Prof at Wayne State and most of the others were small business owners. I was a kid then and in the middle 60s we went out to Redford Township. I went back last year for the first time in Many years. Sure has changed.
Buy anyway my point is not to have banks rehab it is to have them listen to us, pay us a full fee and let us move the houses. They don't have to be perfect but they need to be broom clean with power on so that you can show it.
For you Michigan fans I want to say the reason I went back was that I am an Appalachian State football fan and came for THE GAME. We won the game as you know but you won the hearts of 2000 people who you treated as guests. You made me very proud to be from the state of Michigan. Now I need to tell you that we learned or offense from your new coach. He is a good man. For you State fans   Sorry
Barry Bridges Weichert Bridges & Co.
7:08am • #55
246,912 Points 2 Featured Posts Localism Sponsor Outside Blog Called Shot Master
Kris, I just wanted to stop back by and congratulate you on your featured post! This is quite a good thread you have going here. Great job.
7:50am • #56
338,841 Points 52 Featured Posts Outside Blog
Barry: my point is not to have banks rehab it is to have them listen to us, pay us a full fee and let us move the houses. They don't have to be perfect but they need to be broom clean with power on so that you can show it.  Barry, you've said so much with just the 2 sentences.  Thank you.   And yes, the area surely has changed.  I bet you had a hard time recognizing it.  Glad to hear that when you came back for the game that you had a wonderful time.  Michiganders are hospitable aren't we?   Thanks Barry for your comments, they've meant alot to me.

Mike:   Thanks so much.  I'm glad you had a chance to read it and make your own views known.  One day perhaps the powers to be will listen to those of us who are out there daily and not behind an Excel spreadsheet.
7:55am • #57
251,612 Points Outside Blog
Kris, excellent idea. It would produce jobs plus keep the neighbors happy that the homes being kept up by it's "owner."
10:44am • #58
122,017 Points 6 Featured Posts Outside Blog
I agree completely. You would think they would want more money! I guess they are just too busy for more money. They certainly don't mind dragging everyone else down.
8:51pm • #59
MAY
04
2008
738,077 Points 231 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Kris....   it sounds like a great plan. The banks are already losing money and might receive lowers bids because of the work that would need to be done. If they put in a few thousand into the repairs as you mentioned, it might increase their return 5 times that amount.

jeff belonger
9:04am • #60
MAY
05
2008
1,329,347 Points 189 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Kris, having visited many bank owned properties and pre-auction homes on the market I agree that utilities and maintenance would spruce up so many of these homes and get them in show ready condition. A little lawn mowing, bush trimming, and landscaping wouldn't hurt either. Great thoughts.
7:45am • #61
MAY
09
2008
4 Featured Posts

Kris, I show a lot of foreclosure properties and agree with you completely - the utilities are the biggest problem since lack of power and water hinders the showing, the offer, and the inspection.  My buyers and I don't care how comfortable we are, we just want to be able to see if there is a foot of water in the basement, if mold is growing as a result, and if the furnace and other appliances are out of service too.  The banks are being asked to take less than value because the unknowns are so great, all for a meager monthly utility bill.

10:59pm • #62

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Kris

Kris Wales - Macomb County MI real estate blog & homes for sale search site

Macomb, MI

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Keller Williams Realty - Lakeside Market Center

Address: 45609 Village Blvd., Shelby Township, MI, 48315

Office Phone: (586) 536-5453

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