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Rehabilitation Work on Foreclosed Properties Provides Work for Contractors

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By : Leticia Carvalho    99 or more times read
The emergence of several foreclosed homes due to the economic crisis has left several homes vacant for months. These repossessed houses revert to bank or lender ownership after the previous residents are evicted.

This increase in such properties has flooded the market, creating a drop in home prices that are attracting investors and first-time buyers to purchase the home. However, the house may need a renovation or restructuring job, particularly if no one has occupied the house for some time.

Foreclosed homes are typical victims of cannibalization, theft and vandalism. Perpetrators may be former residents themselves who would strip off carpets, air-conditioning units and even fireplaces from these homes.

Some homes have been invaded by outsiders and even by criminal elements where everything of value has been stolen like appliances, fixtures and even wirings. Some have been vandalized or damaged intentionally by either the former owners or vagrants, resulting to broken windows, holes on walls or doors and damaged carpets.

In San Benito County in California, the number of foreclosures jumped to 1,724 in 2008 and is still growing. This is a big uptrend from only 165 homes in 2005. Neighborhoods and communities are affected with this upturn in vacant homes, which often result to green pools in the backyard or untended lawns turning brown. Worse cases involve thievery and some of these foreclosed homes became haven for criminal elements and even drug addiction.

90 percent of foreclosed properties in San Benito are bank owned. This is a big cry from the numbers of 2005 which is less than 10 percent. The same is true in the city of Hollister which is beginning to catalog vacant homes and holding banks accountable for maintenance. Some of these banks are distant enterprises, like the HSBC (Hong Kong Shanghai Bank Company) that they need to contact and get involved in the program.

Contractors tend to benefit from this predicament as they receive job orders from these banks to perform rehabilitation and maintenance work on these properties.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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