Today's article in the Naples News brings to light the serious but not uncommon practice of stripping homes just before the bank takes it back in foreclosure. Lee County has a big problem but locally in Collier Co, Golden Gate Estates is as bad or worse. Brett Brown, a Naples Realtor recently showed 25 homes in Golden Gate Estates to a prospective buyer. All had been stripped to some degree, some were uninhabitable.
Though it may be illegal, most banks are doing nothing about it. They are too busy and don't have the resources to follow up. The Home Team inspectors say it has gotten so bad, they need to do a second inspection after the home has been repaired to make sure it is inhabitable. I personally showed several homes in Golden Gate to Canadian buyers who were stunned at the condition of some homes that had been purposely damaged with walls kicked in, sewage sprayed on the walls anything worth of value stripped and sold. Many of these were homes that were less than 7 years old.
Some homeowners facing foreclosure have been so brazen as to run adds selling everything from appliances and fixtures to even doors, cabinets, and central A/C systems. Most have at least taken the appliances and fixtures if you are lucky.
What can be done? It is a new and difficult situation none of us have faced before. However, I think one thing that would help is the banks need to have better communication and understanding of the traumatic experience some of these families are facing. If they look at the cost of repairing the damage and theft, and the loss of value of the property because of it, they would soon realize hiring a full time coordinator to contact and work with the foreclosure families would pay big dividends. They could direct them to agencies to assist with relocating them, moving assistance, and financial advisers. Just making an appointment with them with the offer to assist in some way, and visit the property, should stem some of the anger and therefore damage. I am not blaming the banks, the are taking it on the chin already. I am just making suggestions that may help.
The other avenue is enforcement. Jackie Halferty of the FBI special unit in Phoenix has set up sting operations to catch investors who have several properties, in the act of stripping them. So far 5 arrests have been made. If an owner facing foreclosure won't agree to a final appointment with a bank representative, then they are prone to either stripping or damaging the home. AT this point, the bank needs to send a representative to do a drive by and assess the situation. If obvious damage and stripping is taken place, authorities should be brought in. Unfortunately, law enforcement has been virtually non existent. One REO home I sold, had been stripped down to the cabinet hardware. A neighbor saw a truck loading items on it as it was being foreclosed on. When she called the local Marco police, they basically told her it was a civil matter and mind her own business.
The other help could come from neighbors. Homes that have been damaged and stripped, lowers the value for everyone else around them. They should be the eyes and ears to protect their own property values. Most of the time, they know when a home is going into foreclosure and should be very aware of what is happening. If they observe people coming the home and taking out appliances, cabinets, fixtures etc., law enforcement should be called.
Until next time!
Steve Hackman,
Keller Williams Realty
Marco Island, Fl
Thursday, June 25, 2009
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