Now A Foreclosure Has Burnt Down! (insurance, capitalism, real estate, mortgage)

[KevK]

We had enough trouble with the dozen or so vacant houses in the neighbourhood that are forclosures sitting empty. Aside from the fact they are not paying their HOA dues which is causing the rest of us to have to pay more as of Sept 1st, and the HOA having to cut their lawns because the banks won't, now one of them has burned down night before last and damaged the 2 adjacent houses that are occupied. That will certainly do wonders for the neighbourhood property values! And some folks say that this friggin mess caused by greedy sub prime lenders doesn't "effect the majority of homeowners" to which I say "bulls**t!"

[sterlinggirl]

Economic stimulus plan #432
Open year round fireworks stands in neighborhoods with high foreclosure rates.

[pghquest]

Originally Posted by KevK

We had enough trouble with the dozen or so vacant houses in the neighbourhood that are forclosures sitting empty. Aside from the fact they are not paying their HOA dues which is causing the rest of us to have to pay more as of Sept 1st, and the HOA having to cut their lawns because the banks won't, now one of them has burned down night before last and damaged the 2 adjacent houses that are occupied. That will certainly do wonders for the neighbourhood property values! And some folks say that this friggin mess caused by greedy sub prime lenders doesn't "effect the majority of homeowners" to which I say "bulls**t!"

If your HOA dues are going up because of foreclosures, you need new HOA representatives because even though a home is in foreclosure, HOA should still be billing the owners (i.e. the banks) who do pay their bills.

[bentlebee]

The other thing that will go up is the home owners insurance if one of the houses has burned down. This was shown on tv the other day

Some people are walking away very quick and are guilty them self, because after closing they took a higher mortgage to get the equity out (spending it on fitness equipment, more expensive cars, etc.) + many lied on their mortgage applications.

I feel your pain, we are paying higher HOA fees as well. Only when the bank owned is sold the HOA has a change to get some HOA fees back.

I had one bank owned across the street which yard was never maitained from the day the loser closed on it. He was according to his own story an investor who had 22 properties, never had the utilities on and tried to get in a down market to add $ 80 K after closing. He never got one potential buyer and left us with weed that was 3 feet high, only after 8 months the HOA started to mow it and the guy had at one point $ 800.- in HOA not paid + $ 1,300.- in attorney fees and he had stopped paying the mortgage very soon....later the HOA + attorney fees + fines for not maintaining went up. The loser told me he had not paid one dime down and took before foreclosing all the appliances and kitchen island, etc....out...So basically grand theft since he owed 100%.
What will be done about this kind of people who will start over as soon as the market goes back up....the put houses in different names.....the government should also go after people like this.

I hope that the 0% down will history, because people have not the feeling that they own anything and walking away from nothing is easier than having paid 20% down.

Next to me is a home in foreclosure...which takes very long. The owner left the house in Nov. '07 and gave the keys to the bank after trying to sell his house for over 2 years and having another one for sale..all over priced. Than across from my neighbors..these people packed up last week and left and we aren't sure what is going to happen....the wife told us that she will let the house go (wants a divorce) and since she is the only one working and already has shut off the utilities.., her husband wants to rent it ou but has packed up and left too... next to it is in foreclosure for over a year and this person who has a profession in real estate is living for free (not paying the mortgage for over a year!!!) and proud to tell every one...and already had her second lis pendens....I can go on and on...
They say it is only 4% who has the ARM's and has trouble paying but the rest is just walking away because they don't like that the value went down.

[Philip T]

Originally Posted by KevK

And some folks say that this friggin mess caused by greedy sub prime lenders doesn't "effect the majority of homeowners" to which I say "bulls**t!"

[/quote]

Yep. The fool's companion suffers harm.

So why do you hate Capitalism and Freedom, KevK?



btw, one of you in the neighborhood who have some time to waste should probably slap a civil lawsuit on all the banks in that are sitting on houses in the neighborhood. As you have stated it will be easy to show that the person bringing suit is being harmed. Do it pro se -- without an attorney -- and it will only cost filing fees and service fees. However it will the cost the banks named as defendants thousands or even hundreds of thousands to defend the suit. So it will be cheaper and easier for them to take care of the property, or they may even "hire" / contract with the HOA to do it for them.

[Ira500]

Not to sound paranoid or anything, but do you think it's possible that the bank paid an arsonist to set the fire?

[fjtee]

There are a few foreclosures in my neighborhood. After one house got really shabby looking, the bank finally started taking care of it and has even sent a pool company out to fix up the pool. Another house seems to be maintained by the bank, too - from the beginning. But, there are two others on neighboring streets with weeds for grass. Then, one couple managed to rent out their house, but those tenants NEVER mow the lawn. If it weren't for the 5 cars in front, you'd think it was a foreclosure. I hope no more show up, but I'm not holding my breath,

I feel bad for some other neighbors, who had to move due to a relocation. I hope they have a deal where the relocation company will buy their house for them if it doesn't sell in a few months. They hired a service to make sure the house and yard was maintained and their next door neighbors always water their yard along with their own. I'd hate to have to sell right now. I'm so angry at the banks.

[fjtee]

Originally Posted by Ira500

Not to sound paranoid or anything, but do you think it's possible that the bank paid an arsonist to set the fire?

I've been wondering about that myself, so if you're paranoid, you're not alone.

[Donn2390]

Originally Posted by pghquest

If your HOA dues are going up because of foreclosures, you need new HOA representatives because even though a home is in foreclosure, HOA should still be billing the owners (i.e. the banks) who do pay their bills.

My thoughts exactly. Our association only has one home that potentially may be foreclosed on, and the board is preparing for that possibility. we plan to hire a Gardner to maintain the property, if the bank refuses, and the bank will be billed for the HOA fee's, plus interest, and all landscaping fee's. If they refuse to pay, we will take them to court, just as we would an individual. That will eventually lead to placing a lien on the property which must be satisfied upon the sale of the home. You can't make exceptions for any homeowner, not even a bank.

[texdav]

From what I have seen if the city has laws on grass it works better as HOA are really a contract that the bnak didn't really sign . Often they will just have their attorney's file appeals to a higher couirt. That can get expensive. The cities can add the cost to the Taxes in many cases depending on the city ordinance. HOA's are like enforce any contract but in thsi case the contract was with a former owner . HOA's can accumulate very high legal fees and if they lose even higher.