Foreclosures and Communities

[rapunzel]

On our cul de sac, six out of nine of the houses are at varying points in the foreclosure process.

As depressing and sad as this is in terms of the personal wealth of these people being wiped out, I'm now starting to wonder what this is going to do to the community? From what I understand, the lenders generally show up at the auctions on the courthouse steps and bid the amount of the loan for the properties. What happens next? Do the banks maintain the homes? Do they pay the HOA fees? Do they keep the utilities connected?

When massive numbers of houses start to be foreclosed upon, what is this community going to look like? What does it do to the community if the banks just hold these properties until the price goes back up to cover the $790,000 note when the houses are sitting on the market at $550K?

I keep half-expecting to see tumbleweeds blowing down the street.

[Dune-AHH]

I'm wondering the same thing...

I think lenders are currently still in a state of denial. JMO...but at the moment they still seem REactive vs. PROactive (choosing "alot of nothing" to a "little bit of something" returns). That attitude may change, over time, as their foreclosure inventories increase. That, and/or banks as real estate brokers will come to pass...
:idontno: maybe that's been the lender's long range goal all along.

[Mango]

The Banks usually list the property with realtors and some have maintenance crews that check for broken pipes, things like that or they hire one. They continue to pay the HOA and keep utilities on like water and electric usually and pay windstorm. They will take big losses on the sales of those properties. Banks are not in the property management business.
We had a foreclosure in our development. It took about a year before sold, and the price kept dropping till eventually they found a buyer.

We had to chase the Bank initially, Chase, no pun intended for HOA dues for 5 months or so, but got the check eventually, and then they kept up payments. We could have filed a lien, but it's expensive and there would have been no guarantee we would have been paid anyway, I think.
I get confused because the foreclosure laws in Floriduh are different than in N.Y., and even more so with condos, townhomes and single families.
Usually in N.Y. they will sell a foreclosure with clear title or they sell it
non-recourse and you have to do your due dilegence and get a liens report. It can be a hardship for the other owners if timely payments are not made by the foreclosing Lenders to the HOA depending on what's included.

I imagine it's just a pool in your development? If grounds maintenance and management fees are included, it can become cumbersome to cover that many homes. :shock:

[InletBchDweller]

When a bank takes over a house they are responsible for paying the HOA dues. I have recently checked on this b/c several of the HOA boards I am on have been discussing this. If the bank falls behind on their dues then the Association can file a lien on the Bank? Doesnt that sound crazy.

I am not sure about other Associations but in the ones I am involved in we have reserves. In a meeting for a neighborhood you know quite well Punzy;-) ,the board meeting last week was all about improvements and spending more money to make the place look nicer. However, this subdivision is a strong one and has been in existence for several years.

To me, the tumbleweeds come in when a deleveloper had many lots/pre-construction homes and then everyone walked away. The developer is/has taken a beating and so he/she does not care. But then they can not sell the property b/c it looks bad which drives me crazy...:bang:

I am not sure if the keep the utilities connected or not. Right now I think it would be ok, not great. However when the hot months come I can only think of what the door frames and trim joints will look like.:shock:

[rapunzel]

The tumbleweeds thought was based on the emptiness/ghost town sort of feel. I think it will take a while for the neglect to start to show.

I just worry about the feel of the place (all of SoWal) as the inevitable is put on hold. Fewer people, fewer businesses.

I hear a lot of people talking about 2004 prices as some sort of benchmark -- like once prices get to 2004 levels everything will be fine. There's a lot more inventory now than there was in 2004.

There also seems to be a disconnect. The banks won't sell properties or accept the auction prices, but they won't finance properties for the prices being asked, either. Is that just a function of the fact that the Bank of New York is a little too removed from local realities?

[goodwitch58]

When a bank takes over a house they are responsible for paying the HOA dues. I have recently checked on this b/c several of the HOA boards I am on have been discussing this. If the bank falls behind on their dues then the Association can file a lien on the Bank? Doesnt that sound crazy.

I am not sure about other Associations but in the ones I am involved in we have reserves. In a meeting for a neighborhood you know quite well Punzy;-) ,the board meeting last week was all about improvements and spending more money to make the place look nicer. However, this subdivision is a strong one and has been in existence for several years.

To me, the tumbleweeds come in when a deleveloper had many lots/pre-construction homes and then everyone walked away. The developer is/has taken a beating and so he/she does not care. But then they can not sell the property b/c it looks bad which drives me crazy...:bang:

I am not sure if the keep the utilities connected or not. Right now I think it would be ok, not great. However when the hot months come I can only think of what the door frames and trim joints will look like.:shock:

IBD: do you know anything about that half finished development near Walton Rose Lane? It seems to be that could be a safety issue for people as well as being very unsightly....there are at least 7 houses in various degrees of construction.

[scooterbug44]

I don't know if it applies locally, but deserted/unmaintained homes due to foreclosures and financial troubles is a big issue. I hear stories of neighbors cutting the lawns etc. to keep the place from looking so icky. :idontno:

[InletBchDweller]

IBD: do you know anything about that half finished development near Walton Rose Lane? It seems to be that could be a safety issue for people as well as being very unsightly....there are at least 7 houses in various degrees of construction.

NO I dont but I HATE that place! To me the county should not allow a place like that to sit, and sit, and sit, and sit....:bang::bang::bang:

[goodwitch58]

I agree. I called Code Enforcement....apparently, they have no procedure for letting a citizen know about the disposition of a complaint/inquiry....

[rapunzel]

NO I dont but I HATE that place! To me the county should not allow a place like that to sit, and sit, and sit, and sit....:bang::bang::bang:


Has anyone complained to code enforcement?

[beachmouse]

Between those kinds of properties, and neighborhoods where most homes see infrequent vacation use, it would seem like more proactive code enforcement is looking a little bit better.

Prices stabilizing lower than they were in 2004 for non-exclusive properties might not be a bad thing. Good and varied housing options in the 300K-500K range in an area as attractive as SoWal will help bring in the kind of long term professionals and small businessmen that you want as long term permanent residents of an area. Go after more of the mid-career types who can telecommute or consult from home, and who can live just about anywhere, and offer them a high quality of life at a price that is seen as not cheap, but a good value, and over time you build a healthier local economy than the current tourism and real estate dominated one.

[rapunzel]

Between those kinds of properties, and neighborhoods where most homes see infrequent vacation use, it would seem like more proactive code enforcement is looking a little bit better.

Prices stabilizing lower than they were in 2004 for non-exclusive properties might not be a bad thing. Good and varied housing options in the 300K-500K range in an area as attractive as SoWal will help bring in the kind of long term professionals and small businessmen that you want as long term permanent residents of an area. Go after more of the mid-career types who can telecommute or consult from home, and who can live just about anywhere, and offer them a high quality of life at a price that is seen as not cheap, but a good value, and over time you build a healthier local economy than the current tourism and real estate dominated one.

Imagine all the people...sharing all the world...

In the meantime, the lack of stability is making it impossible for people to get a foothold here, and stay here. Even if you take good financial advise and rent, you might still find yourself caught up in this whole mess. Moving every few months (with all the stress that entails) and losing deposits just doesn't make any sense. Nor does buying a home when the prices are all over the map and the overall trend is still downward. In our neighborhood, professionals are moving away and some are talking of walking away from their mortgages as though that's a totally logical and expected sort of thing.

It boggles the mind that anyone would want to become sheriff in this county.

[30A Skunkape]

The banks need to hire people to periodically shine the stainless steel and granite.

[waterst1]

All of those Walton Rose unfinished houses have been forclosed on. First Tennessee in Memphis owns 3 (including one that is only a slab) and the others are owned by a lender in Ohio. I know people who have tried to buy them and the lenders are not really trying to make a deal. I would like to find a way to force the county to do something about it because it has to be a hazard. The houses will need to be demolished if they stay unfinished much longer (or they may be beyond hope now...)

[jamnolfin]

Is this the subdivision between 30-A and Camp Helen off back beach. If so Ive been wondering about that place.

[goodwitch58]

Since we don't have a pro-active code enforcement, maybe if we all call, someone will do something.

622-000. It is the development on Walton Rose

I called a few weeks ago.:bang:

[30A Skunkape]

Maybe they will turn into crack houses of the rich and famous?:idontno:

[scooterbug44]

Or meth houses of the non-so rich, but infamous ;-).

[Canuck]

All of those Walton Rose unfinished houses have been forclosed on. First Tennessee in Memphis owns 3 (including one that is only a slab) and the others are owned by a lender in Ohio. I know people who have tried to buy them and the lenders are not really trying to make a deal. I would like to find a way to force the county to do something about it because it has to be a hazard. The houses will need to be demolished if they stay unfinished much longer (or they may be beyond hope now...)

We were told a while back that there was a law suit pending between the developer and the buyer which would now be the bank. Apparently the developer was never pd....just what we heard. BTW this is franny posting under Canuck's name. My computer is under the weather.

[30A Skunkape]

Or meth houses of the non-so rich, but infamous ;-).

Seriously, the investulators who caused this mess have done way more long term damage than an army of crackheads running wild could have.

[scooterbug44]

No argument here!

I think the people who loaned money when they shouldn't have should get a big whomp upside the head and be held fiscally responsible, as should the people who knew it was going on and let it! :angry:

[ASH]

Not here to pi$$ anyone off, but there are a few people living here because they had the right amount of money available at just the right time who bought up property, built the homes and sold them to the uninformed and inexperienced, who are now living high on the hog who are now turning their backs on all the problems the local community now have to deal with. You know who you are.
Some of the issues are local people. Many are not. Either way it is a shame. We all want to retire as soon as we hit the jackpot. I wasn't one of them who had any chips on that day, so I have to try to scrape a living out of what is left.
Those who know who took unfair advantage of the economy to make way too many nickels could do all of us a favor and start pointing them out so that we can stop feeding the pig.
Sorry if I offended anyone. It was not my intent.
My intent is to put the light on those who need to be called out on the rug because they abused a small community so that their money supply can dry up just like too many people they unwittingly sold to.
Everyone deserves a fair deal in the right "heaven", but we shouldn't have to suffer hell to get there.
Anyone agree?

[SHELLY]

Anyone agree?

I might.....if I know what and who you are talking about.:idontno:


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[rapunzel]

abd

[SHELLY]

The Sun Sentinal is running a three-part expose on the foreclosure crisis down south. The graphics and articles tell the story of what foreclosures are doing to their neighborhoods.

http://www.sun-sentinel.com/news/local/palmbeach/sfl-foreclosures,0,5849333.storygallery

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[quartz sand]

Anybody care to make a list (or better yet a map) showing 1) planned communities that went into foreclosure before the developers broke ground, 2) communities like Walton Rose that have a significant number of unfinished homes in foreclosure, 3) communities that have a high number of homes in foreclosure?

[SHELLY]

Anybody care to make a list (or better yet a map) showing 1) planned communities that went into foreclosure before the developers broke ground, 2) communities like Walton Rose that have a significant number of unfinished homes in foreclosure, 3) communities that have a high number of homes in foreclosure?

I doubt it.

THE™ Beach isn't as forthcoming about the situation as Central and Southern Florida. They're more apt to close their eyes, stick their fingers in their ears and go "la-la-la-la-la."


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[ASH]

Shelly, I believe you answered your own question in another thread. I attached the comment below. I believe it was bankers willing to write loans that should not have been written and I believe it was sellers (not necessarily just realtors) who sold property/homes to people knowing their world was going to crash on them eventually. The seller made their buck and to heck with the circumstances someone else would be dealing with later. I'm not trying to regulate other's conscience, but there were a good number of people who must have been keeping theirs in a jar under their bed while they conducted business deals.

You forgot to finish the story:

.....Loan Officer pulls credit, which shows a mortgage taken out in 2004 that now has a 60 day late on it and a past due balance of 2 full payments. There is a $450 car payment that began in 2006. There is another car payment of around $550 taken out 4 months earlier. Credit score is around 540.

Loan Officer: Congratulations, sign here, here, here and here, initial here and here....here's your check.

(Afterall, how else did these "deadbeats" get their hands on the money in the first place?)