BluefoxToday blog : Foreclosure dangers

Foreclosure dangers

 

Foreclosure houseThe real estate down market many areas are currently going through poses several dangers in the form of foreclosures. Sometimes we don't pay much attention to a foreclosure in our neighborhood, but we really should. It's understandable to feel sorry for the people who have to leave their home under a cloud. It's never easy for anybody.

We ought to look beyond the emotions, however. What does it mean to the property values in the area? To the value of your own house? Usually they'll suffer. Could be very little, could be substantial. If there is only one, it probably won't have much of an effect. But should there be several, look out. Whoever, be it a bank or the homeowner, is selling wants to move the property fast and at almost any price. There is not much neighbors can do to change that sequence of events.

But there is something they can do to protect their property values when a foreclosure sits vacant for a longer time. These homes are often in less than stellar condition and tend to attract vandals and squatters and other opportunists on the prowl for appliances. This sort of activity will further depress the property's value if left unchecked. Therefore, area homeowners could team up to keep an eye on the foreclosure.

Here's an inspiring example of teamwork. When one bank refused to maintain a foreclosure yard before finding a buyer, homeowners on the same street agreed to do it themselves to preserve the neighborhood's clean-cut character. I'd call that pro-active. It may cost you some time and a few dollars, yet the savings at the end could be generous. 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 3 commentsEsko Kiuru • May 23 2007 05:09PM

Comments

Nice Idea to keep foreclosures looking better.
Posted by Bruce Swedal, Denver Real Estate about 11 years ago
Esko, this is one thing I don't like about real estate.  A home that is in foreclosure or not taken care of in a neighborhood can really bring values for those homes in the area down.  Of course, if there is a nice home in the neighborhood, it will drive the value up for the crappy homes.  I know this is just the way it works but I hate that!  What great teamwork those homeowners had in the story you shared...they donated their personal time without pay.  Not only does that help the neighborhood but that was also an act of kindness.
Posted by Patricia Beck, Colorado Springs Realty (RE/MAX Properties, Inc., GRI, CDPE) about 11 years ago

Bruce,

It doesn't have to cost much to keep your neighborhood respectable.

Patricia,

The teamwork just doesn't happen often enough. People simply don't realize the benefits of taking action.

Posted by Esko Kiuru about 11 years ago

Participate