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Foreclosed or Short Sale Real Estate is destroying our Cities

By Clark Isaacs  

Many homeowners have gotten angry with their mortgage companies for foreclosing upon their homes when they did not make their mortgage payments. Additionally, when the banks tried to work with them to end the stalemate which had been created when they were not able to make their house payments, there was a "Short Sale" attempt made to sell the home to another buyer at a reduced rate.

This has resulted in a complete fiasco for the banks and the federal government who have an interest in all of these sales and modifications. The homeowners who had occupied these homes have destroyed the homes.

This writer toured several homes in Las Vegas and Henderson Nevada recently seeking another place to live which would be less costly than his own home. What was found was at first unbelievable. The first home which was toured with a real estate agent had all of the kitchen cabinets removed, the light fixtures were gone and bare wires hung from the ceiling. An addition was constructed on the 2nd floor and the floor slanted. A neighbor said this was built by the previous owner without a building permit. It showed!

The pool was empty and all of the surface was cracked and peeling. It would have to be filled in as it would never be usable again.

House after house appeared to be the same. The prices were about $100,000 and previously these had been in the $300,000 to $400,000 range. Vacated but without mercy for another person who might buy it. These homes were without kitchen cabinets, built in appliances, or A/C units which had also been removed.

The real estate agent said that this was common for all of the homes listed on the current market, but they were selling fast because the prices were low and the $8,000 tax credit was going to expire at the end of April, 2010. Any of these homes would have to be repaired with about $50,000 or more.

Upon further investigation it was found these were not the only homes in this condition. Bullhead City, Arizona has the same problem with the foreclosed and bank owned homes. Also, the short sale homes are in the same condition.

A conversation with the people at J. P. Morgan/Chase bank disclosed that they too have their horror stories about the homes out there no matter where they are located.

A solution is needed and quickly or we are going to loose what there is left of American Values. If there is Federal Money invested in any of these homes and the value is depreciated by the illegal taking of the fixtures or other property attached to the home, the FBI should investigate and charge those who have committed the thefts. This money should be recovered from those responsible.

A good question would be, if they do not have the money to pay for their rent or mortgage how could you collect from them? The answer is their tax refunds. Congress could impose the ability of the IRS to collect this money and the funds collected could be put into assisting those homeowners who need it.

Clark Isaacs is an accomplished book critic and writer who is published in local newspapers and national book review lists. Contact Clark through his website at clarkisaacs.ning.com or through NewsBlaze.