Arizona Republic: Abandoned homes concern city officials (foreclosures)

[marmar]

Abandoned homes concern city officials
Edythe Jensen
The Arizona Republic
Jul. 28, 2007 02:03 AM

Increasing numbers of newer Chandler homes are being abandoned by cash-strapped owners, leaving weeds, green pools and headaches for neighbors and city officials.

"It's scaring me," neighborhood services Sgt. Greg Carr said of the trend. "We're trying to figure out how we can approach this, who do we call when homeowners walk away and we can't find them?"

Carr doesn't have statistics but said home foreclosures are rising and along with them code violations. His counterparts in Mesa, Gilbert and Peoria said the phenomenon is affecting those municipalities, too. A significant portion of the recent Chandler complaints are from newer neighborhoods in southeastern parts of the city where homes once sold for $400,000 or more and values have dropped, Carr said. Buyers who divorce, lose a job or can't afford rising adjustable-rate interest are finding they can't sell their houses for what they owe on them, he said.

One abandoned home in the Brooks Ranch subdivision near Chandler Heights and Gilbert roads has a $499,000 assessed value for tax purposes, tall weeds and a green pool. Carr said he hasn't been able to contact the owners and has asked Maricopa County to treat the pool so mosquitoes won't breed in it. In that same neighborhood a home that sold for $701,000 in March is on the market for $689,000.

Sun Groves resident John Simpson lives across the street from an abandoned house in a 5-year-old subdivision. He said it has been an eyesore for almost a year even after he repeatedly called and e-mailed city and county officials.

"The former owners sold the house for double what they paid, but the new owners got divorced and left."

They even left their Dalmatian in the backyard," he said. "We have the dog now."

Carr said he is so worried about the increasing numbers of vacant homes that he is planning meetings with real estate professionals and wants to develop a list of properties in foreclosure for monitoring. .....(more)

The complete piece is at: http://www.azcentral.com/community/chandler/articles/0728cr-foreclosed0728.html

[Demeter]

1. It's Been That Way in Michigan for Years

Nice to know that the Red States are feeling the heat at last.

[ayeshahaqqiqa]

2. I have an idea they won't like

if foreclosed property doesn't sell and the bank or whoever holds the note does not take care of the property, the county should take it over, and sell it at auction to the highest bidder, and if it doesn't get a buyer, turn it into subsidized housing for the poor.

[elehhhhna]

3. Yep. The bank took the risk, lost, and must maintain the property unitl

it is sold again.

[ayeshahaqqiqa]

7. Or face fines

or the eventual loss of the property altogether. We've seen a lot of foreclosures here, but not many abandoned houses - yet. That's because our tax rate is low, housing costs relatively cheap, and people are coming from out of state, mainly CA and NV, to buy homes. Last new homeowner I talked to said they were moving here because otherwise they wouldn't be able to afford to retire. But I find it ominous that very few new homeowners are from here. What happens when the would-be retirees stop coming here to buy houses?

[CountAllVotes]

6. or how about make an animal rescue out of it

and employ a few folks while they are at it? :think:

:dem:

[DBoon]

11. I like your idea

:)

Though in some ex-urban locations, the City should also consider making the property public open space - a park or something.

I'd hate to locate the poor in a location where there are no jobs, no services, and no public transit.

[MadMaddie]

4. No surprise...there were warnings and no one listened

And as far as tthe morans that left their dog....don't get me started.

<snip>
They even left their Dalmatian in the backyard,"
<snip>

[Sarah Ibarruri]

5. The bank owns a mortgaged property. Why aren't banks taking care of these properties? nt

[EST]

8. The banks don't, actually.

The house is sold, the mortgage is sold, with the original writer making a piece, and the responsibility moves on. The purchaser of the mortgage, or another a few levels on, bundles the mortgages and offers them to a further holding company, who will generally re-package them into risk categories and offer them on the market, where "investors" buy shares of the bundle and hope the values go up.
All the "owner" knows is that she/he owns a piece of a mortgage bundle and it pays or it doesn't. Don't expect that owner or group of owners to mow the lawn.

The huge escalation in paper house values begins to resemble a huge ponzi scheme, with the usual suckers jumping in, losing a bundle and jumping out.

[Sarah Ibarruri]

14. True, but it's the bank that takes it back.....

... so doesn't the bank have responsibility to keep it up?

[havocmom]

9. Lots of mortgages NOT thru banks.

In Az, I knew many independent mortgage lenders who didn't really even have a store front. Even knew a couple who let guys (who had LOST their mortgage licenses) operate on their license for just a cut of the $$. You KNOW those sorts are doing HIGHLY questionable loans.

Lots of independent 'mortgage lenders' are really just straw-men who put people with some cash to invest and people who really can't meet bank criteria together (for a fee, of course). Those are some of the foreclosed homes more likely to sit and fall into disrepair.

[Sarah Ibarruri]

15. True also. Banks aren't the only ones lending.

[fed-up]

10. whoopee-a $12K reduction-"home that sold for $701,000 in March is on the market for $689,000" nt

[ben_meyers]

12. Fools and their money

At the height of the frenzy in Phoenix it was estimated that 40% of housing transactions were "investors". Many from Ca. and some bailing out of Las Vegas. The better builders here tried to shut down the speculators by not selling to anyone with another property in AZ. (and yes it's legal) As of this morning there are over 55,000 homes listed on our MLS with only 3400 closings MTD in July, and that doesn't include new builds or fsbo's. A great majority of the foreclosures and abandonments are "investor" owned and were never even occupied. Some of these fools paid $3-5000 to attend seminars on getting rich quick in real estate, and we could see them coming a mile away.

I feel sorry for the normal folk who now are are having trouble selling when they have to, but I have been working with some on "short sales" to help out.

I made enough money on the greedy fools to be fine, and with 9000 people a month still moving here the market will recover in a while, but don't sell if you don't have to.

[hatrack]

13. I'm eagerly awaiting a new series from HGTV or TLC - "Foreclose On That House!"

Maybe "Courthouse Steps" or "Tax Sale" would work.

:eyes: