Their foreclosures delayed, vacant homes fall into disrepair

[RamboLiberal]

Source: Pittsburgh Post-Gazette

KANSAS CITY, Mo. -- Some nights Terry and Carrie Madden won't even step onto their patio -- the stench and mosquitoes from the abandoned swimming pool next door are overpowering.

The Maddens' cash-strapped neighbors moved out in August, and the lender on the now-vacant house let it fall into disrepair. The pool is slime-green. The grass is knee-high. Once Carrie Madden had to call police to chase away burglars.

"It's frustrating," she said. "It's an eyesore, and it sits right at the entrance to our neighborhood. It's not only a blight, it's unsafe."

Not what you would expect in a neighborhood of homes whose average value is about $280,000.

City officials say the house is a prime example of a little-reported but increasingly worrisome trend: Lenders are delaying foreclosing on homes vacated by owners who can't keep up with payments. Maintenance then stops, or it falls on taxpayers. And neighborhoods have to deal with a growing cancer of blight and falling home values.



Read more: http://www.post-gazette.com/pg/08174/891245-30.stm

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How are the prissy Homeowner Associations handling this one?

[yardwork]

1. Good question!

This country is starting to remind me of the Soviet Union circa 1982.

[The_Casual_Observer]

2. Kansas or the USA for that matter isn't Switzerland, is it.

[Deja Q]

3. "How are the prissy Homeowner Associations handling this one?" With this:

* A spare hand
* KY jelly
* An unoccupied bathroom


/badtaste

[Kittycat]

4. Why say "prissy" - A home left like that is obviously a health and safety risk

The better question is, "What is the city doing about it?".

The answer should be, taking the lender to court and fining them like they do regular homeowners. Here in Northern IL, we've had reports of West Nile over the past few years. I'd be very concerned living next door to a home, with a pool like that. Not to mention the risk and temptation (although doubtfully now) that children might break in to swim - but definitely the risk of robbers, rodents, infestation, etc.

We have a homeowners association here, actually most every neighborhood in our area does - so it's pretty common. Sure some are more strict, but I don't consider ours one of those. Rather it's meant to keep up with things like basic sanitation, property care, etc. We can't leave our raw garbage sitting out for days - it has to be contained and in the garage. We can't let our property go to waste, as described above, because of the health and safety risk posed. If we lived in a rural area, that's different. But when you're smashed in to a small area with lots .18-.25 acres, and over 750 homes - you have to accept the reality that you just can't let it all go like that.

[RamboLiberal]

7. HOA can serve a purpose

But I've also heard the horror stories of those who rule what color a house can be painted, what shrub, bushes, trees can be planted, what fences can be erected, and horrors if someone plants a vegetable garden, down to if garage doors can be open during the day.

No thank you. I'm happy to live w/o them!

If they can't get the bank in to keep the property up, then maybe they ought to take it on themselves to keep up at least the outside of the abandoned property.

But I wonder if they will continue to survive if people can't afford to live in their overpriced homes and their overpriced commute to work.

I think it's a kind of domestic blowback. Those areas are now experiencing what much of us in lower-lower middle class neighborhoods have had to endure.

[Alcibiades]

20. It's the fact that the homes in that vicinity cost 280k

that was supposed to make this article shocking to us. That was the hook. If you can afford that, you're supposed to have the right to buy good schools and a nice neighborhood.

Entropy being what it is, I am really surprised any neighborhoods at all stay well-maintained for long. The whole suburban industrial complex is a fool's game.

[Telly Savalas]

24. The house in the OP isn't in the burbs, it's in the heart of the city

Most of the houses in that area are more than 50 years old.

[MercutioATC]

5. $13 at a pool store would solve the stench/mosquito problem...

...$13 of chlorine would kill everything in that pool.

[soothsayer]

25. yup, that's what I was thinking.

[ben_meyers]

6. Actually many HOA's are in financial trouble as well

If you can't collect the fees you can't pay the bills.

[Purveyor]

8. Article on unpaid HOA dues: HOA Fees Go Unpaid

<b>In areas hardest hit by housing crisis, 30% of residents spurn charges</B>

Erin Zlomek
The Arizona Republic
Jun. 22, 2008 12:00 AM

Despite its crisp appearance, including lavish water fountains and well-kept greens, the Villages at Rancho El Dorado Homeowners Association in Maricopa struggles to pay its bills.

Like several HOAs across the state, more than 30 percent of its residents skipped out on paying their mandatory membership fees, a result of the subprime mortgage crisis and looming foreclosures.

The fees are HOAs' only source of income and fund community upkeep but often fall last on the list of bills to pay when owners scrimp to cover their mortgages.

"People are thousands of dollars delinquent," Rancho El Dorado HOA President Peggy J. Chapados said. "We're seeing a lot of public auctions. We're seeing a lot of short sales."

Valley-wide, HOA fee delinquency rates average about 15 percent, up from 3 percent in 2006, according to property-management companies City Property Management and Associated Asset Management, two of the largest in the state.

The companies, respectively, manage about 200 and 325 of the Valley's HOAs and Condominium Owners Associations. Areas where population growth failed to keep pace with home building, such as Buckeye, Lavine, Queen Creek and Maricopa, are most affected.

The outstanding debt is bad news for both delinquents and their timely neighbors.

---EOE---

http://www.azcentral.com/arizonarepublic/local/articles/0622fees0622.html

[proud2BlibKansan]

9. There is probably no homes association in that neighborhood

It's not far from where I live.

This is happening nationwide. There is talk of legislation forcing mortgage holders to maintain the properties they foreclose on.

[Raster]

10. The lenders SHOULD BE FORCED to maintain the properties they foreclose on.

And they should be faced to fork over the HOA fees and anything else that goes along with maintaining the property until a buyer is found. I am sick and tired of hearing about the poor lender. Let's put things into perspective, shall we? A $250,000 house will end up costing AT LEAST TWICE that much when you are finished paying for it. The Lenders take a very hefty commission for lending the money. This effectively puts home ownership out of the reach of many. And if there is a downturn, like today's bubble...who is the government going to bail out, the person about to lose their house? No, they'll bail out the lender, the banker.

[FoxNewsSucks]

16. That's why they do NOT

foreclose on every property. Before foreclosure, the property is the responsibility of the homeowner. Once the bank forecloses it becomes the owner-of-record and taxes maintenance and dues become the bank's responsibility. By delaying foreclosure of a property they'd be unable to sell anyway, they delay that responsibility. They also are understating the real extent of the foreclosure crisis.

[hedgehog]

18. I agree. If a homeowner or landlord lets the property get run down,

the city will come out and mow the lawn and add the cost to the taxes. If the bank forecloses, the bank needs to take over the responsibility for upkeep. Sorry to say it, but I'm betting it's going to take a tragedy followed by a hefty lawsuit before things change.

[man4allcats]

12. Makes sense to me.

When they foreclose, they effectively become the homeowner. As such, they should be required to keep their property in good repair - just like every other homeowner.

[FoxNewsSucks]

14. That article was in the KC star

a week ago. The actual point was that lenders are NOT foreclosing on properties specifically to keep from being forced to take over the responsibilities of ownership.

Mainly, once they foreclose, they are then responsible for upkeep, taxes etc.

Secondarily, they are hiding the true scope of the mortgage problem by NOT foreclosing on every single property. It's a far larger problem than we think.

[proud2BlibKansan]

21. Yep that ole delay tactic

I know someone who was foreclosed on 6 months ago. She had to move out of her house but it still sits there vacant while the mortgage company processes paperwork. The lawn hasn't been mowed and the neighbors are livid. No one is sure who to hold responsible for upkeep.

[Xenotime]

11. It's sad to see these people suffer while the rich get to live their life.

[izquierdista]

13. Stupid Adbot

Find Foreclosures!

Yeah, right, how hard can that be? Just drive around looking for foot-tall grass and weeds and a green swimming pool.

[williesgirl]

15. Why aren't the lenders forced to keep the homes in repair? Especially where there's a HOA?

As the "owner" of the house, the lender should be required to abide by the HOA rules or face legal action. Why would the taxpayers have to step in and help out a bank or mortgage company? This is bullshit. This particular story sounds like a local health issue as well. rec'd

[PinkTiger]

17. I'm a real estate agent in Missouri; let me help you understand this.

Once the foreclosure process is complete, the lender will clean up the property and maintain it. However, it takes months or longer to do this, especially if the owners are in bankruptcy or there are other issues. Some of the foreclosures we deal with are so bad that the lenders will work to help the former owners move out, and pay them "cash for keys" if they leave the house in broom clean condition and do not vandalize the premises when they go. But sometimes there are other issues. If the owners can't pay the electric bill, and there is no water, the toilets get nasty; pools have to be emptied or maintained. The lender can't do much unless they have the right to go in, and they have to wait until they have this right.
Also, there are so many foreclosures right now in some neighborhoods, evictors can't keep up with demand. It is a very tough situation.

[Javaman]

19. jesus, some people are completely helpless...

I had the same situation next to me. I cut the grass and threw those mosquito donuts into the pool.

[AlCzervik]

22. we know have a phone number specifically for this problem in my town, you call

report the address and the lender starts getting fines which add up quickly. I'm glad because i got really tired of cutting the lawn next to mine and pulling the weeds, i did this for 2 months and it became a real pain in the ass.

[KnaveRupe]

23. As a municipal Code Enforcement Officer,

I can attest that this is a huge problem.

We are forced to go after the people who have lost their homes in foreclosure because until the bank finalizes it and the deed is transferred, the foreclosees(?) are still responsible for maintenance and upkeep on the property.

It really sucks having to cite someone for not cutting the grass or repairing the gutters on the house they lost to the bank.