Trashing of soon to be foreclosed homes

[Wonka]

Apparently, this has become a huge problem. Frustrated owner's being forceclosed are trashing homes, removing applicances, etc.

We live in a middle class neighborhood in Florida. This week I learned about a home that was completely trashed here. It probably sold for about $400,000 a year ago. This was a very nice home with a swimming pool on a water view and a good neighborhood.

The owner's used a hammer on each and every wall punching holes in the drywall. Spread feces on the walls and carpeting. Destroyed cabinets and all the plumbing fixtures. Tore out shrubbery and threw it in the pool and destroyed the pool equipment. I'm told the damages probably were about $100,000.

The shocking thing is they haven't appeared to break any Florida laws, so they aren't responsible for the damages, and will probably get some kind of tax relief for the mortgage balance difference.

Somethings very wrong with this picture, huh?

 

[DonM]

The owner's used a hammer on each and every wall punching holes in the drywall. Spread feces on the walls and carpeting. Destroyed cabinets and all the plumbing fixtures. Tore out shrubbery and threw it in the pool and destroyed the pool equipment. I'm told the damages probably were about $100,000.

Some deviant sub-Human species

 

[pjrose]

How can this possibly not be breaking laws? Vandalism and Criminal Mischief at the very least, Disorderly Conduct, Destruction of Private Property - the bank owns the house.

And I agree with the comment "Some deviant sub-Human species"

 

[SherryS]

In a foreclosed condo near my son's in University Park, FL, all cabinets plumbing , and fixtures were removed and sold by the owner before he left! Unbelievable!

 

[T_R_Oglodyte]

How can this possibly not be breaking laws? Vandalism and Criminal Mischief at the very least, Disorderly Conduct, Destruction of Private Property - the bank owns the house.

And I agree with the comment "Some deviant sub-Human species"

I think the legal situation is that until foreclosure is complete, the bank does not own the house. So the homeowner is simply trashing something that they own.

I'm not justifying it; I'm merely commenting as to why this wouldn't legally be considered vandalism. I do believe there should be penalties for a person who engages in such action once a notice of foreclosure is issued.

 

[ricoba]

Unfortunately, I think this is becoming an all too common problem.

Perhaps this is another one of the consequences of the zero down mortgage. Since the buyer had no real stake in the property, why not trash it?

After all, it's all the banks fault, right!?

 

[Wonka]

How can this possibly not be breaking laws? Vandalism and Criminal Mischief at the very least, Disorderly Conduct, Destruction of Private Property - the bank owns the house.

And I agree with the comment "Some deviant sub-Human species"

Legal foreclosure takes a long time. My guess is the homes being destroyed are still in the process and the bank isn't the owner. I think some states might have legislation making it criminal conduct to intentionally destroy property and a the FMV of a property with creditor interests, but I'm not sure.

Can one be arrested for vandalizing their own property? I don't know.

Having a situation like this occur only a couple blocks away has been very upsetting to me. I'd like to see folks like this in jail. Somewhere I read that every foreclosed home in a neighborhood reduces the values of other homes in the neighborhood 1%.

It also bothers me that these folks will probably get another mortgage after the 7-year credit reporting, or whatever the date is when it must be erased. They should also not be allowed to exclude the difference from the sales price and the mortgage on their tax returns and at a minimum pay full taxes on the mortage shortfall as income.

 

[pjrose]

I think the legal situation is that until foreclosure is complete, the bank does not own the house. So the homeowner is simply trashing something that they own.

Legal foreclosure takes a long time. My guess is the homes being destroyed are still in the process and the bank isn't the owner. ...

Can one be arrested for vandalizing their own property? I don't know.

I thought as long as there was a mortgage, the bank owned the house and the home "owner" was just paying it off. I guess instead the owner does own the house, but it is collateral against the mortgage?

Perhaps this is another one of the consequences of the zero down mortgage. Since the buyer had no real stake in the property, why not trash it?

Yup - low interest rates and low if any down payment brought in those who otherwise might not have qualified, then adjustable rates (and unemployment in many cases) made the payments unaffordable, and having no real stake made it easier to just walk away or, in the worst case, trash it.

I wonder what percent of those caught in this situation have been able to work out alternate financing or other ways of keeping the house? Are those who are abandoning the houses the minority? Surely those trashing the houses must be in the minority...I hope.

 

[ace2000]

Legally, they're still accountable for their damages. The bank can go after them for any amount lower than the loan amount minus what the house eventually sells for on the foreclosure market.

So, I don't understand what you mean by legal... maybe criminal charges, I guess.

 

[brother coony]

After all, it's all the banks fault, right!?

Yes it IS. in 2004 to 2005 I got tones of solications from banks to come in to discuss no money down loans, I went to one that bought me and my wife dinner, along with about 100 other people,(note I said One) It was not worth it, as afther dinner they wanted your so.sec. number to get you pre. qulified and give you a written commitment up to a certain amount of funds and tell you go find a house they will give you the mortgage,

I have a couple rental property and my bank knows this, every time I walk in inthose year, the bank Manager, would give me a big smile and ask when am I coming for a loan
in 2004 /2005 Banks were more aggressive than timeshare salesmen

 

[pjrose]

Yes it IS. in 2004 to 2005 I got tones of solications from banks to come in to discuss no money down loans, I went to one that bought me and my wife dinner, along with about 100 other people,(note I said One) It was not worth it, as afther dinner they wanted your so.sec. number to get you pre. qulified and give you a written commitment up to a certain amount of funds and tell you go find a house they will give you the mortgage,

I have a couple rental property and my bank knows this, every time I walk in inthose year, the bank Manager, would give me a big smile and ask when am I coming for a loan in 2004 /2005 Banks were more aggressive than timeshare salesmen

Great example.

 

[Andar]

There are so many homes in foreclosure in the Sacramento area, new businesses have started.
For example, the brown lawns of empty houses were a huge eye sore and affected other properties.
One guy, as filmed and reported by KRCR TV, started a lawn PAINTING service. Yes, he goes and sray paints the lawn green:hysterical:

 

[IngridN]

Yes it IS. in 2004 to 2005 I got tones of solications from banks to come in to discuss no money down loans,
in 2004 /2005 Banks were more aggressive than timeshare salesmen

I beg to disagree. Until recently, DH and I received 4-6+ solicitations for credit cards a week. You are saying that if I chose to open these accounts, charged to the limit, that it's their fault? Whatever happened to taking responsibility for your actions or just saying no. You were kidding, weren't you?

Before you judge me too harshly, I have a close family member who is caught up in this mess. They overextended themselves because they wanted to get into a better school district for the kids. Even though they owe more than the house is now worth, they have no intention of walking away and are hoping they can work with the bank to refinance into a more favorable interest rate early next year. Even if they lose the house,they wouldn't dream of trashing it.

Ingrid

 

[catwgirl]

I know of one person whose house was in foreclosure that was offered $2000 to leave the house on time and in good shape.

 

[Ken555]

Yes it IS. in 2004 to 2005 I got tones of solications from banks to come in to discuss no money down loans, I went to one that bought me and my wife dinner, along with about 100 other people,(note I said One) It was not worth it, as afther dinner they wanted your so.sec. number to get you pre. qulified and give you a written commitment up to a certain amount of funds and tell you go find a house they will give you the mortgage,

I have a couple rental property and my bank knows this, every time I walk in inthose year, the bank Manager, would give me a big smile and ask when am I coming for a loan
in 2004 /2005 Banks were more aggressive than timeshare salesmen

Let me get this right. It's the BANKS fault if you took them up on their product at a great price? Because they used standard business marketing tactics to get you interested in what they have to sell? And you think they are at fault if you signed up and then defaulted on a loan? Your opinion, I am sorry to say, is totally absurd.

 

[pcgirl54]

This is not something new. It happens in market downturns before. Some owners get mad they are losing their home and trash the house to get even. Illogical and wrong but true and a darn shame.

 

[rsnash]

Something no one else has mentioned above... This is why it is imperative to personally inspect any house before buying it, especially one that is in foreclosure. Although most people are suffering in this real estate downturn, many others see it as an investment opportunity. If you have excellent credit and some cash to put down, it is totally a buyer's market right now. But frequently, homes in foreclosure are for sale sight unseen. Don't buy anything without seeing it, after the occupants have left and the keys have been changed.

 

[wackymother]

Do you remember in Paper Moon--it's the Depression, and the people are leaving the house because the bank has foreclosed and the whole family and everything they own is piled on the truck, and Ryan O'Neal hands the father his gun? And the father shoots out every window in the house, hands back the gun, and they leave?

This is nothing new. There's anger and bitterness when you lose a house, no matter whose "fault" it is.

 

[Wonka]

Something no one else has mentioned above... This is why it is imperative to personally inspect any house before buying it, especially one that is in foreclosure. Although most people are suffering in this real estate downturn, many others see it as an investment opportunity. If you have excellent credit and some cash to put down, it is totally a buyer's market right now. But frequently, homes in foreclosure are for sale sight unseen. Don't buy anything without seeing it, after the occupants have left and the keys have been changed.

I stopped by the home I posted about yesterday. Essentially, it was gutted and prepared for reinstallation all the wall board, carpeting, tile, appliances, toilets, etc.

My understanding is the house was purchased for $120,000 and the repairs will be $80000-$1000,000. A similar home would sell for about $349,000. So, somone got a good deal, and it will be like new once completed. The loser is the bank and those of us paying for the bailouts one way or the other.

 

[Lawlar]

It Isn't Pretty

I know of one person whose house was in foreclosure that was offered $2000 to leave the house on time and in good shape.

That is actually good advice. I use to recommend to landlords who needed to evict a tenant who wasn't paying the rent to offer the tenant several thousand dollars to vacate the premises. The payment wasn't made until the tenate left the premises in good condition.

I think it is awful to see someone trash a home. No matter what the circumstances.

But it happens. My old law firm did a bankrutcy for a family and my ex partner eventually bought their home from the bank after it foreclosed. Before our clients left the home they trashed it. The bank then had to sell it really cheap which is when my ex partner bought the home. So I guess the up side from this unpleasant situation is that anyone looking to buy a foreclosure will have plenty of opportunities.

 

[camachinist]

Having been inside upwards of 50+ foreclosed/REO/short sale properties in the last few months, I can vouch for the OP and have the pictures to prove it. Some were so bad I should've worn a respirator. The termite guys and home inspectors I've spoken with say I've seen nothing. This is going to be a bad winter for all these broken and abandoned homes. Lots of rot and degradation. We luckily found a well-preserved one that was already empty and not damaged beyond normal wear and tear and, surprisingly, Well's Fargo/Premier Assets has been real easy to deal with.

In our area, our city has passed ordinances regarding landscape/pool maintenance as well as boarding of windows (we have a lot of broken windows in our area). So, owners (no matter who) get fined and the houses liened if the ordinances aren't followed. City workers take mitigative measures and bill whomever they can find relative to the property (real estate brokerages, banks, owners of record). Our area has been hit real hard so it may not be indicative of the overall marketplace.

Editorially, it just kills me that all the beautiful architecture and skilled craftsmanship in these older (our interest) homes has been destroyed and forgotten, all in the name of money.

Pat

 

[grupp]

Legally, they're still accountable for their damages. The bank can go after them for any amount lower than the loan amount minus what the house eventually sells for on the foreclosure market.

This is not true in every State.

Gary

 

[Keitht]

Does foreclosure in the US remove all debt from the owner? It doesn't in the UK. If the house sells for less than the outstanding loan the bank can still go after the owner for the shortfall. Trashing a house over here would simply leave the owner with a bigger shortfall to make up.

 

[pranas]

I think it does. In my community, the town does go after owners owners for code violations, including dirty pools and overgrown yards. The worst offenders are banks. They don't want to take care of the property that they have foreclosed on. Town now sends letters then puts leins of properties. This does help the neighbors somewhat.

 

[frenchieinme]

there is enough blame here to pave a path around the world...

Let me get this right. It's the BANKS fault if you took them up on their product at a great price? Because they used standard business marketing tactics to get you interested in what they have to sell? And you think they are at fault if you signed up and then defaulted on a loan? Your opinion, I am sorry to say, is totally absurd.

BANKS are to blame for lending $$$ to people (at often times 0 $ down) whose credit check clearly showed they were extremely high risk as a best case scenario as well as BORROWERS themselves taking on rsik when highly leveraged thru other debt which clearly could be scene with their debt/earnings ration which manifested itself to having a hard time having ends meet.

There is such a strong parallel to buying a timeshare (how often have people's input on this forum made it known they should not have bought) that it is comical :hysterical: but yet tragic.

frenchieinme