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Foreclosures and Communities

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rapunzel

rapunzel

Beach Fanatic
On our cul de sac, six out of nine of the houses are at varying points in the foreclosure process.

As depressing and sad as this is in terms of the personal wealth of these people being wiped out, I'm now starting to wonder what this is going to do to the community? From what I understand, the lenders generally show up at the auctions on the courthouse steps and bid the amount of the loan for the properties. What happens next? Do the banks maintain the homes? Do they pay the HOA fees? Do they keep the utilities connected?

When massive numbers of houses start to be foreclosed upon, what is this community going to look like? What does it do to the community if the banks just hold these properties until the price goes back up to cover the $790,000 note when the houses are sitting on the market at $550K?

I keep half-expecting to see tumbleweeds blowing down the street.
 
I'm wondering the same thing...

I think lenders are currently still in a state of denial. JMO...but at the moment they still seem REactive vs. PROactive (choosing "alot of nothing" to a "little bit of something" returns). That attitude may change, over time, as their foreclosure inventories increase. That, and/or banks as real estate brokers will come to pass...
:idontno: maybe that's been the lender's long range goal all along.
 
The Banks usually list the property with realtors and some have maintenance crews that check for broken pipes, things like that or they hire one. They continue to pay the HOA and keep utilities on like water and electric usually and pay windstorm. They will take big losses on the sales of those properties. Banks are not in the property management business.
We had a foreclosure in our development. It took about a year before sold, and the price kept dropping till eventually they found a buyer.

We had to chase the Bank initially, Chase, no pun intended for HOA dues for 5 months or so, but got the check eventually, and then they kept up payments. We could have filed a lien, but it's expensive and there would have been no guarantee we would have been paid anyway, I think.
I get confused because the foreclosure laws in Floriduh are different than in N.Y., and even more so with condos, townhomes and single families.
Usually in N.Y. they will sell a foreclosure with clear title or they sell it
non-recourse and you have to do your due dilegence and get a liens report. It can be a hardship for the other owners if timely payments are not made by the foreclosing Lenders to the HOA depending on what's included.

I imagine it's just a pool in your development? If grounds maintenance and management fees are included, it can become cumbersome to cover that many homes. :shock:
 
When a bank takes over a house they are responsible for paying the HOA dues. I have recently checked on this b/c several of the HOA boards I am on have been discussing this. If the bank falls behind on their dues then the Association can file a lien on the Bank? Doesnt that sound crazy.

I am not sure about other Associations but in the ones I am involved in we have reserves. In a meeting for a neighborhood you know quite well Punzy;-) ,the board meeting last week was all about improvements and spending more money to make the place look nicer. However, this subdivision is a strong one and has been in existence for several years.

To me, the tumbleweeds come in when a deleveloper had many lots/pre-construction homes and then everyone walked away. The developer is/has taken a beating and so he/she does not care. But then they can not sell the property b/c it looks bad which drives me crazy...:bang:

I am not sure if the keep the utilities connected or not. Right now I think it would be ok, not great. However when the hot months come I can only think of what the door frames and trim joints will look like.:shock:
 
The tumbleweeds thought was based on the emptiness/ghost town sort of feel. I think it will take a while for the neglect to start to show.

I just worry about the feel of the place (all of SoWal) as the inevitable is put on hold. Fewer people, fewer businesses.

I hear a lot of people talking about 2004 prices as some sort of benchmark -- like once prices get to 2004 levels everything will be fine. There's a lot more inventory now than there was in 2004.

There also seems to be a disconnect. The banks won't sell properties or accept the auction prices, but they won't finance properties for the prices being asked, either. Is that just a function of the fact that the Bank of New York is a little too removed from local realities?
 
InletBchDweller said:
When a bank takes over a house they are responsible for paying the HOA dues. I have recently checked on this b/c several of the HOA boards I am on have been discussing this. If the bank falls behind on their dues then the Association can file a lien on the Bank? Doesnt that sound crazy.

I am not sure about other Associations but in the ones I am involved in we have reserves. In a meeting for a neighborhood you know quite well Punzy;-) ,the board meeting last week was all about improvements and spending more money to make the place look nicer. However, this subdivision is a strong one and has been in existence for several years.

To me, the tumbleweeds come in when a deleveloper had many lots/pre-construction homes and then everyone walked away. The developer is/has taken a beating and so he/she does not care. But then they can not sell the property b/c it looks bad which drives me crazy...:bang:

I am not sure if the keep the utilities connected or not. Right now I think it would be ok, not great. However when the hot months come I can only think of what the door frames and trim joints will look like.:shock:
Click to expand...

IBD: do you know anything about that half finished development near Walton Rose Lane? It seems to be that could be a safety issue for people as well as being very unsightly....there are at least 7 houses in various degrees of construction.
 
I don't know if it applies locally, but deserted/unmaintained homes due to foreclosures and financial troubles is a big issue. I hear stories of neighbors cutting the lawns etc. to keep the place from looking so icky. :idontno:
 
goodwitch58 said:
IBD: do you know anything about that half finished development near Walton Rose Lane? It seems to be that could be a safety issue for people as well as being very unsightly....there are at least 7 houses in various degrees of construction.
Click to expand...

NO I dont but I HATE that place! To me the county should not allow a place like that to sit, and sit, and sit, and sit....:bang::bang::bang:
 
I agree. I called Code Enforcement....apparently, they have no procedure for letting a citizen know about the disposition of a complaint/inquiry....
 
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