Issues That Plague Foreclosed Properties

No one will argue that you can find some good price deals on foreclosed homes. However some have sat so long on the market that they need major repairs.

At the height of the housing decline in 2009, there were some homes that have sat on the market for more than two years. As a result of sitting unoccupied for so long, some had major issues like cracked ceilings and mold. Every week thousands of people stand on the courthouse steps of their local county to bid on a foreclosed property. In most cases people are purchasing these properties sight unseen.
Prior to the economic decline that began back in late 2007, most foreclosed homes were in pretty good condition because they only sat on the market for a few weeks. Fast forward to today and you have foreclosed properties that are in really bad condition because it is taking years for banks to sell them.
One issue that many foreclosed homes have today, is mold building up in the basement and attic. This has especially been the case with foreclosed properties in states like Florida and Georgia which have experienced above averages amounts of rain in the past few months. All the excess moisture has caused a lot of water damage and high levels of mold. To some people “mold” may not seem like a major issue, but it can cause a lot of health problems if not treated.

In addition to the unstable housing market, mold issues are another reason that many banks cannot sell their foreclosed homes. It also doesn’t help the situation that more home buyers today are becoming more savvy and persistent when it comes to demanding a thorough mold test as part of their home inspection.

While it can be pretty difficult for banks to oversee the maintenance of single family foreclosed homes, it is even harder for them to manage maintenance issues for foreclosed town homes and condominiums. This is because in many instances the homeowners association is responsible for maintenance and repairs. Having a homeowners association involved creates another level of “red tape” for the lender. It is this type of situation that causes a foreclosed property to sit on the market for years.

Another issue found in many foreclosed homes today is the theft of appliances, pipes and wiring. Because the economy is still unstable and the unemployment rate is still very high, there are many people out there who are stealing the appliances from foreclosed homes so they can sell them for money. After stealing the appliances from the home, some will come back and remove all the pipes and wiring. Needless to say this makes the home almost un-sellable.

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