San Diego Bank Owned Homes: Did they leave the foundation(?)!
Posted by Gretchen Pagnotta | Visited 1017 times, 3 so far today | Currently 4 Comments »
I experienced the first “thief” of a foreclosed property three years ago. The home was actually a listing I had attempted to sell for a year. It was a beautiful home in Santaluz, upgraded nicely and owned by a professional couple. They purchased at the height of the market, and soon realized when they went to sell it two years later that they could no longer make the loan payments, and the loans exceeded the value. So, like so many people in the recent real estate down turn, they stayed in their home without making any payments on the loan, taxes, or HOA. When the bank would no longer allow them to stay in the home, they were forced to move out.
However, as they were moving out, they decided to help themselves to everything that they could load onto a truck. The neighbors, including myself, watched as pickup trucks hauled off the refrigerator, ovens and other appliances. We all thought the same thing; “Isn’t this illegal? How can they be doing this?” Now, I find these practices commonplace, and am amazed at some of the homes I view. I guess it isn’t illegal as I have never seen an arrest!
The lenders have done all they can do to just get people out of their homes, and have implemented a program “cash for keys” to try to get the keys and get residents out before they do any damage. Somehow people just can’t help themselves. Even when given “cash for keys,” I have seen the homes stripped of appliances, expensive drapes, fireplace screens, actual fireplace glass doors, shower doors, light fixtures, BBQ’s pool equipment and one even had the master toilet taken! Now really, how much money can someone get for a used toilet? Somehow I just can’t see how people justify their behavior.
The reason we see many bank owned properties selling at greatly discounted rates in their condition is not comparable with resale owner occupied homes that have been well cared for. I think the MLS should require agents to document what was missing in the bank owned homes and note the condition of the yard and interior on an established scale. I have had to inform appraisers that $30,000 worth of appliances and light fixtures were missing as well as $25,000 worth of window coverings so they could adjust the pricing for a comparable sale. Buyers who are looking to purchase a foreclosed home need to add up all the items they will need to replace to determine the value they will pay for the home. The bank owned homes are sold in “as is” condition so it is also imperative that buyers receive a thorough home inspection by a qualified professional.
If you are a buyer looking at a bank owned home, bring a notebook, calculator and camera when you view REO homes. You can start making a check list of the items you will need to correct and work some estimates of replacement and “fix up” costs. Your first indication that the bank has made a visit to the home will be the new dead bolt locks on the doors. Don’t expect them to match the Baldwin locks that were originally on the home. You will see the least expensive deadbolts, usually shiny brass. I purchased a bank owned home recently. The original hardware was all distressed rubbed oiled bronze but my new locks were shiny brass that gleamed. I had to re key and replace all locks…quite a costly expense.
The next thing to focus on is the ceiling. …look up! Do you see wires hanging unattached to what should be a light fixture? You see these on walls also. Actually it sometimes appears as if the former owner literally tore the fixtures out of the walls.
Next focus downward at the flooring. When refrigerators are torn out of the walls they need to be dragged across the floor to get them out of the home. Remember these people are not planning to live in these homes anymore so they are not employing moving companies to move their appliances to a pick up truck! Many homes need the carpeting replaced because it has been so badly soiled. I have to wonder when owners simply flip a switch and decide not to clean and to destroy their home. Other items commonly missing include window coverings, fireplace screens, BBQ’s appliances, gates, doors, audio equipment and cabinets.
Once you have an estimate of what it will take to put the home in its original condition, you can make a decision if it is a good value. Some buyers are so caught up in the frenzy of getting a “deal” they are not looking at the big picture. Some of the best values I sold in the past 2 years have been owner occupied homes that were in excellent condition. The sellers were motivated and priced their homes with the current market. Buyers need to look at the entire inventory in neighborhoods they are considering to make the best informed decision.
Next focus downward at the flooring. When refrigerators are torn out of the walls they need to be dragged across the floor to get them out of the home. Remember these people are not planning to live in these homes anymore so they are not employing moving companies to move their appliances to a pick up truck! Many homes need the carpeting replaced because it has been so badly soiled. I have to wonder when owners simply flip a switch and decide not to clean and to destroy their home. Other items commonly missing include window coverings, fireplace screens, BBQ’s appliances, gates, doors, audio equipment and cabinets.
Once you have an estimate of what it will take to put the home in its original condition you can make a decision if it is a good value. Some buyers are so caught up in the frenzy of getting a “deal” they are not looking at the big picture. Some of the best values I sold in the past 2 years have been owner occupied homes thaty were in excellent condition. The sellers were motivated and priced their homes with the current market. Buyers need to look at the entire inventory in neighborhoods they are considering to make the best informed decision.
Thanks for all the great information, it is sad to see people that get to the point they need to be kicked out of there house but at the same time they are abusing laws that were put into place to protect people and by abusing laws they hurt banks and other people that are trying to do their job and the cost is past along to the average person who does the right thing.
Well they can’t stay on the property but they can take their own things away.. It’s a great move from them
Hi all, we found this here when i did an fast google search. Neat post you have here! Keep it up!
thumbs up for the blog.