REOs - homes sitting there deteriorating

NEW -> Contingent Buyer Assistance Program
G

garfangle_IHB

New member
<p>If a bank owned property (REO) is left to sit unoccupied, it can become the target of vandals, arsonists, and squatters. While the main house structure may not deteriorate right away, after a few months of neglect the lawn gets overgrown, windows get smashed and valuable interior work, like copper pipings get stolen. While at the outset, the home might retain its market value (though less than what the bank thinks it's "worth" and lists it for), over time as this deterioration occurs, the property becomes that much harder to sell at the initial asking price. Banks are often forced to reduce the price further because prospective home buyers will have to invest additional funds to rehabilitate the neglected house to livable conditions. Therefore, banks recoup even less than what they could have gotten if they had set the initial asking price to the market clearing price. The result is even further writedowns on their balance sheets.</p>

<p>In a declining market like we have today, why are banks so stubborn in this regard?</p>
 
<em>"In a declining market like we have today, why are banks so stubborn in this regard?"</em>





When they get staffed up to handle all the REOs, they will follow a written procedure for loss mitigation that tells them when to reduce price and by how much. They will not deviate from their procedures.





It sounds like you are asking for common sense from an institution. It probably will not happen...
 
During our recent house hunt here in TN, the wife and I noticed a vacant house next to one we were looking at. I asked the agent about that house. It looked like it had what we needed, like a garage, but the landscaping was overgrown. Our agent checked the records on that vacant house when we got back to his office. Turns out it is a REO. Bad thing, though, is that is has been REO since September 2004!! It appears to have been a first payment default. It looked to have been a good house when it was built, but to be vacant for over three years!! Holy poo, Batman! There's no telling what has happened with that house in that time period.
 
Zornundo- when you said TN do you mean tennesse? when i was visiting memphis i notice alot of empty apt complex. do you know why that is so? wouldn't the city tear down the dump if it is standing empty for so long?
 
yup, I mean Tennessee. I know jack squat about memphis. I'm east of Nashville. Only housing tidbit out of Nashville recently is a glut of condos that are gonna hit the market this year. Imagine that.
 
<p>Right now is the time to start making inroads with the banks and find out who the players are. Kinda a you help me, i'll help you kinda thing. </p>

<p>Anyways good luck and don't work too hard.</p>

<p>-bix</p>
 
<p>Morgan Stanley, Lone Star Stick Taxpayers With Default Costs </p>

<p><a href="http://www.bloomberg.com/apps/news?pid=20601109&sid=a4QXOv7cvVKs&refer=home">http://www.bloomberg.com/apps/news?pid=20601109&sid=a4QXOv7cvVKs&refer=home</a></p>

<p>March 7 (Bloomberg) -- Boston taxpayers spent $10,120 last year maintaining a derelict condominium building on Hendry Street. One of the three apartments belongs to <a t_delay="50" t_width="110" t_bgcolor="#ddedd9" t_fontface="Verdana,sans-serif" t_fontcolor="#000000" t_static="true" t_above="true" href="http://www.bloomberg.com/apps/quote?ticker=MS%3AUS">Morgan Stanley</a> and another to Dallas-based leveraged buyout firm Lone Star Funds.</p>
 
<p>So why don't they file liens and then foreclose on them? </p>

<p>Miami does hundred dollar a day fines if the mess is bad enough.</p>

<p>My daughter is an architect in Boston, and she's always always had a job since she got her masters 14 years ago, but I'm a bit worried.</p>
 
You must log in or register to reply here.
Back
Top