As the problems in the housing industry continue to trample on the nation’s economy, there is an increasing number of communities that are becoming affected by the large inventories of foreclosure homes. With a national foreclosure rate of one filing for every 475 homes, it can only be expected that home value in recent months have declined considerably.
According to experts and analysts, the high foreclosure rate will naturally affect home values in any neighborhood. Since most of these repossessed properties are abandoned, they certainly affect the neighboring property’s curb appeal. Keep in mind that neighborhoods sell a particular lifestyle and with a foreclosure marring the view; it could really cause buyers to get turned off.
Neighborhoods which are having problems with these foreclosure homes should understand that it will take a conscious effort to make sure that home values do not decline further because of these repo homes.
One of the first things that can be done is to contact the agent or broker in order to trace the bank that owns the foreclosure home. Once the bank is identified, the neighborhood can put a pressure on the bank to assign a property manager or at the least, check the condition of the property. Of course, this is only possible if the foreclosure process has been completed and the bank has complete ownership.
If the banks refuse to take any action, neighborhoods can check with the code enforcement division of the city’s building department. If it was found that the distressed properties are hurting the entire community, the said division can impose a fine on the bank who owns them.
Worse case scenario is for the neighbors to launch a “neighborhood improvement program”. This could involve mowing the lawn, boarding up the windows and cleaning the pool. In any case, doing these things will certainly benefit everyone.
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