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Old 06-03-2010, 10:53 PM
 
146 posts, read 313,704 times
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Few weeks ago a friend told me that when a home goes into forclosure, the bank hires someone to damage the property to collect insurance. Is this true?
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Old 06-04-2010, 01:10 PM
 
374 posts, read 1,036,191 times
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Well, that would be insurance fraud, so can't imagine a bank would be willing to risk that. Plus, mold is usually excluded from insurance policies.
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Old 06-04-2010, 01:16 PM
 
10,875 posts, read 13,807,778 times
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Quote:
Originally Posted by justnice View Post
Few weeks ago a friend told me that when a home goes into forclosure, the bank hires someone to damage the property to collect insurance. Is this true?
Not at all, they would be just shooting themselves in the foot. Many banks are actually paying the former owner's to not trash/gut the house because it's become such a huge problem.
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Old 06-04-2010, 05:41 PM
 
60 posts, read 291,667 times
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I heard about that, TempesT68. It was called "Cash for Keys." Sounded like a good deal to me, but the guy being interviewed didn't get many takers.
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Old 06-06-2010, 09:37 AM
 
Location: Winnetka
114 posts, read 387,167 times
Reputation: 76
The banks also hire preservation companies. Their role is to shut off the plumbing, change locks and dismantle some but not all of the electric in the homes. They also "clean up" the homes before the lender or banks try to sell them.
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Old 06-06-2010, 04:11 PM
 
Location: Hobart, IN
157 posts, read 440,287 times
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When I tried to see the pictures, they had been removed from mls. In TN or any other state there are forms concerning mold. I have been told there are companies that will remove mold. How long had the house been empty? Have been in some houses that I could not show because of the smell.
It makes me aware of the smells in my own home. lol
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Old 06-06-2010, 04:31 PM
 
10,875 posts, read 13,807,778 times
Reputation: 4896
Quote:
Originally Posted by Rlest8 View Post
The banks also hire preservation companies. Their role is to shut off the plumbing, change locks and dismantle some but not all of the electric in the homes. They also "clean up" the homes before the lender or banks try to sell them.
That is rare. In the summer nearly everytime all utilities are turned off, and the winter they simply winterize. I've never seen one cleaned up on the inside and most maintenance i've ever seen is once in a while they will mow the lawn.
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Old 06-06-2010, 05:38 PM
 
Location: Chicago
15,586 posts, read 27,602,442 times
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Quote:
Originally Posted by kindrakindra View Post
Well, that would be insurance fraud, so can't imagine a bank would be willing to risk that...
As if banks have ever worried about breaking the law in the past.
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Old 07-21-2011, 09:50 AM
 
55 posts, read 161,867 times
Reputation: 31
I just wanted to update this thread because I am so intrigued by this house.

It is now a year later and the house is contingent.
The house that once looked like this:
3600 ILLINOIS Rd, Wilmette, IL 60091, $549,900, Wilmette, Illinois real estate for sale

Now looks like this:

http://www.redfin.com/IL/Wilmette/36.../home/12598318

I bet the seller didn't live there for the last 12 months so there is no disclosure about the mold. Anyone have access to disclosures.

Thoughts?

Last edited by trickygal; 07-21-2011 at 09:54 AM.. Reason: Typo
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Old 07-21-2011, 10:25 AM
 
66 posts, read 150,585 times
Reputation: 52
part of the comment from one of Redfin's team that viewed the property:

"Nice home, smells like the floors were just re-finished"
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