Buyers' Revenge: Trash the House After Foreclosure »
Posted by: Neophile 5 months, 1 week ago145 Comments Report this Story
Bankers and mortgage companies often find that by the time they get the keys back, embittered homeowners have stripped out appliances, punched holes in walls, dumped paint on carpets and, as a parting gift, locked their pets inside to wreak further havoc.
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ghengisghan5 months, 1 week ago
In my state it is a felony if the damage is over 500 dollars.
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Will13135 months, 1 week ago
I'm a real estate appraiser.. I've seen at least a dozen trashed homes since the first of the year.....
some are very inovative...
one house the people stripped all the drywall from the inside.. took all the lighting fixtures wiring, plumbing and air conditioners... there were 3 .. all the windows and sliding doors from the rear of the house... the pool equipment diving board even the coping and tile from the inside of the pool and spa.. pealed the tile from the floors.. the house sold last year for 675.. now worth in current conditon.. 200 tops...its a shell.. and you better be VERY HANDY...
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GHOSTWHOWALKS5 months, 1 week ago
I just returned from Tennessee where I helped a college friend basically build his house. We built cabinets, counter tops, but in new carpet, new drywall, repaired the ceiling, installed new hard wood flooring and granite tile and restored the deck. The house was originally priced at $250,000 and was bought for $1500.00. Total amount spent to restore the house $52,500 for materials. A damn good thing we both were handy with tools, or this would have cost somewhere around $90,000.
The people who destroy a home because they can no longer afford it are also those who should never have been able to buy a home.
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Teech5 months, 1 week ago
..."The people who destroy a home because they can no longer afford it are also those who should never have been able to buy a home..."
Ghost, I agree absolutely. With some exceptions, probably, if reasonable banking regulations had remained intact, these irresponsible dirt bags would never have qualified to buy these homes in the first place. Just like the low lifes that they are, they blame the banks for their own unwillingness or inability to live up to their contractural obligations. Sure, many of those "sub-prime" loans were nasty with their payment increase, but in their greed and haste to turn a quick buck, buyers got overextended and couldn't stand the gaff.
There is no excuse for that willful vandalization of property owned by the bank. I'll bet their drug dealer and the local casinos and liquor stores got their money before the bank got theirs from these people.
Bottom line, I'm grateful that I downsized and can afford my payments.
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Lurch5 months ago
>The people who destroy a home because they can no longer afford it are also those who should never have been able to buy a home.
I agree, but any mortgage is a 50/50 deal, on a good day. Nobody forced the banks to sell the mortgage, charge the fees, take the interest, and so forth.
Predatory lending occurred and people lost their life savings and their credit rating. In other words, in a average working career of about 45 years, they lost ten because the banks or brokers swindled them.
Now, they are being forced as tax payers to bail out the same banks. I do not know what I would do. Besides, if I knew the next guy was going to get a good deal, I would be tempted.
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DoseASpinoza5 months, 1 week ago
If you've ever seen a home foreclosed on crack/meth heads, that is exactly what they do. They strip out anything they can sell to support the habit.
In that case it has nothing to do with the bank. Typically they have stripped the house before it went into foreclosure.
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Will13135 months, 1 week ago
in the house I described.. they cut out the air conditioning lines stole both the compressors and the condensers there was ALMOST nothing of value.. i'm almost surprised they left the roofing tiles on the back of the house..
the neighbors HAD TO KNOW unfenced yard.. with a house on each side no more than 20 feet away.....
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nostalgia5 months, 1 week ago
"bankers and mortgage companies often find that by the time they get the keys back, embittered homeowners have stripped out appliances, punched holes in walls, dumped paint on carpets and, as a parting gift, locked their pets inside to wreak further havoc."
The last phrase tells you all you need to know about the type of people they are
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DoseASpinoza5 months, 1 week ago
I'd rather live in a cardboard box with my dogs than leave them to who knows what. One is sitting right here beside me as I type...oh, here comes the other one now.
We are a family and I would no more leave them behind than cut myself to bleed on the house.
People who do this have no morals and no shame.
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markmawn25 months, 1 week ago
You could live in a cardboard box in style if you were in Japan. Behold the 0 mortgage home!
http://www.treehugger.com/files/2006/03/post_25...
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nostalgia5 months, 1 week ago
Have you read this story??
Utah police are searching for a man accused of throwing a lost dog off of a busy highway overpass.
Emergency dispatchers received several calls Thursday about a dog being thrown from an overpass onto I-15.
http://www.ksn.com/news/also/17161996.html
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joeblowe5 months, 1 week ago
I know someone who went through a foreclosure. They were also going through a divorce (financial problems ARE hard a a marriage, it seems), and I have a little insight into this. These people TRIED to work with the bank to avoid the foreclosure. The bank - I won't say which one (**COUGHWAMU**) told them one thing one day, another thing the next, promised to "work something out" - then didn't, jerked them around every which way you can imagine. This MAY have simply been due to incompetence on the part of local branch personnel, but THAT much incompetence? From their story I can understand WHY someone would want to get back a little at a bank that had screwed them over, or lied repeatedly. They finally gave the house away to one of those weasel companies that buys distressed properties cheap to help people avoid foreclose. Not pretty at all. The level of frustration, stress and anxiety in this type of situation can cause people to do things they might not ordinarily do.
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amazed5 months, 1 week ago
yes, and it's the US's fault that those 19 guys climbed into passenger planes and flew them into civilian buildings...
I just don't buy it. One party's bad behavior does not give another party license to even worse behavior.
People are responsible for their own actions. You can't control what anyone else does or whether they deal with you fairly or unfairly, but you sure as hell can control yourself-- or you should be able to by the time you're an adult.
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joeblowe5 months, 1 week ago
In general I agree. But - in cases like this where the consumer, although certainly in some measure responsible for the situation they find themselves in, cannot seem to get any satisfaction or reach ANY sort of accommodation with a mortgage lender (other than being lied to repeatedly) I can understand the frustration that might make someone want to retaliate somehow. I'm not saying it's RIGHT - I'm just saying I've seen how frustrating it can be to deal with lying lenders. And in most cases, there is NO way to get them to behave better. LEGALLY, the lenders are in the right (most of the time) so all anyone can hope for is the possibility of some cooperation that would avoid a foreclose. Which, as we have seen, is good for NEITHER the bank nor the homeowner. And, although we agree that individuals involved are responsible, the mortgage industry set this situation up - so they should participate in the suffering - or be willing to help ameliorate it.
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KISA452a5 months, 1 week ago
And the loan company is responsible for helping/letting people into houses the company knew they could not reasonably afford if historic economics continued (ie, rates climbed from 40 year lows). It was greed, plain and simple. No, mortgage companies don't actually care about helping "you achieve your dream of home ownership".
Doesn't necessarily excuse the owners either, but there is plenty of "blame" to go around. The banks take the houses and dreams of the owners (and often much more with the ruined credit), and the owners take a little back as well.
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chevydog5 months, 1 week ago
Hard to justify this, probably impossible. Many people saw a chance to make big money by gaming a system run amuck; lenders likewise got into the picture since all they saw was easy money with no risk. When the bubble finally burst, the result is what we see.
I guess that paying money to have people leave a place in decent shape is the best of some lousy alternatives. But it runs against my nature to pay or be paid for stuff that should be standard procedure.
One interesting question to me is what lenders do with the houses that they repo.
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eddie1075 months, 1 week ago
What is a big bargain?
A house that was built using $30000 worth of materials That was on the market for $350,000 and is now going for half that, but in reality, is only worth a quarter of that?
People have gotten completely out of control on home values. It was people's greed that got them into the mess, now we need to come back down to reality. People have made a lot of other people rich because they have lost the skills to build a house themselves.
My income has gone down in the past 20 years, yet real-estate prices have gone up a thousand percent.
This is the only hope for the common person to have anything at a decent price. Let the prices drop.
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DropkickaLib5 months, 1 week ago
What people who do that don't realize is that they are compounding the overall economic problem. If the bank can't resell the house without a substantial loss, it puts the bank in a worse financial situation and affects the ability of others to borrow money and buy homes. People who do this aren't just hurting banks. They are also hurting other people in need of credit by making the systemic problems in the market even worse.
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eddie1075 months, 1 week ago
Banks were in it to burn people from the start too. Sure they would give you a loan, but only because they counted on property becoming more valuable. Sure there is a chance that this family that makes $25,000 a year cant afford a house that has been priced at $300.000. But then again, there isnt much else out there that is decent to live in, unless you move to the projects.
What is really sad, is that the people who could afford it the least, the banks charged more. If you are poor, beat the H#!! out of them with the interest rates so they can possibly pull it off. Then take the property.
Or if they can, give them a loan for $100,000 and make them pay back $250,000. It was the perfect scam for them.
The banks are getting exactly what they deserved.
Corporate America has become an out of control monster.
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Global_Warmer5 months, 1 week ago
"Sure they would give you a loan, but only because they counted on property becoming more valuable."
It is illegal in all 50 States for a bank to profit on the sale of a foreclosed property. Any monies left after all taxes, legal fees, and mortgages (in that order) are satisfied are returned to the borrower. So I guess you'll have to look for another motive.
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KISA452a5 months, 1 week ago
Your comment is great from an "ivory tower" perspective, but not a "real-world", getting thrown out of your home with nowhere to take your kid and pregnant wife since you likely lost your job, not to mention no health insurance.
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Lurch5 months ago
good point drop,
Just a thought though. The banks paid millions to lobby for the law changes that allowed this, made billions off the loans and fees (from your/my pocket), and now the Fed is bailing out these banks for 'our' benefit?
When does personal or other responsibility apply to those who benefited most from this situation?
My lender stuck me with a lousy rate after promising a good rate up until the signing day. I won't say the name of the lender, but it starts with countrywid*.
Luckily or wisely, I did not overbuy and am paying that 2nd mortgage down like nobody's business because of that high rate. In fact, in two years paid it down enough to have already improved the rate once.
But am still not happy how it went down and the x number of dollars that afore unmentioned company pocketed off me unethically.
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mozzer5 months, 1 week ago
I can only imagine the buyer's frustration and heartbreak as they undergo a foreclosure, but acting out in this manner is petty and juvenile.
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OnionHeadComment removed: User banned.
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STONERS5 months, 1 week ago
Its all about the money to them, if you dont have it then get out, they dont care that you may not have any family around and your only option is the streets or a shelter- think about it- this lady I know went through this and she had nobody to help her at all even with three kids, I can say that I understand why they do what they do. If they wont not "cant" its "wont" work with them because we all know these places can work with them. Ive been told from several people about foreclosers and around here even the rental properties are very hard to find. What are all these people suspose to do? Even the shelters are turning them down because they dont have anymore room. How can people throw children in the streets is beyond me... This same person sold her car for 100 bucks just to help feed her kids. What's the world coming too? Also as I drive around the block from my home I see that every other house is setting empty...
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amazed5 months, 1 week ago
And how long should they wait? I've got a tenant who I've been trying to "work with" since they moved in. Now their six months behind in their rent -- I'll never see it. And because I "worked" with them rather than just starting the evictions process as soon as they started not paying well, they'll end up a whole year behind by the time I get rid of them. How long should I support them (yes, there is a small child involved) before it's "ok" to kick them out? I even gave them a break on the rent -- and they still haven't paid anything since January.
Oh, btw -- there are four adults in the house and they all have full-time jobs.
I have learned from this. I doubt I will bother to "work with" a tenant again. I'm sure, over the years, the banks have also learned...
Hey Stoners-- so, it will be my fault if they trash my house?
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eddie1075 months, 1 week ago
Your situation is completely different. Tenants can be very hard to work with, and the laws that protect them are much more stringent than people who have been foreclosed on. And the worst part of it is, if they leave and trash your house, you may be able to have them arrested for vandalism, but it is doubtful, and you cant sue them because they have nothing to take.
Sadly, I think you need to let them know that you are regretably are going to have to start the proceedings, and ask for cooperation in leaving the property.
Hopefully you will have made a little money from them in the past so that loosing them wont be so devastating.
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STONERS5 months, 1 week ago
amazed- sorry to hear that but thats a little different,my story had only one adult with three kids and wasnt behind untill recently because of work cut her hours and she is really really trying but in your case you have 4 working adults in the rental property- start the eviction. It sounds to me like they are scumbags that are taking you for what they can. 4 working adults- they shouldnt have any problems paying you rent. Sometimes we all take a loss when we have renters, I have...
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normallysilent5 months, 1 week ago
nothing new about this. Its been this way for a long time
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texangelwings5 months, 1 week ago
This is rewarding bad behavior! No one should be rewarded for destroying mortgage holders property! People should seek legal counseling to find out what their legal recourse is and to determine their rights! This is like kids throwing a temper tantrum because they didn't get their way!
I can understand the mortgage holders side, because, it is expensive to have work done on a home. I do what I can on my house, and then have to pay someone to do the rest. My sons live too far away and are busy working.
Thanks Neo, interesting article!
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HMMace5 months, 1 week ago
Well--it was really the bankers greed that allowed it to happen in the first place---they deserve to have the house trashed..
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ghengisghan5 months, 1 week ago
Congress making threats to the lenders if they didnt ease standrds for lending doesnt bear any responsibility?
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Lurch5 months ago
my broker set me up, promising a decent rate (actually high but not out of this world high) for a 2nd mortgage. I went to the signing and guess what, 'oh, my manager says we cannot do that loan package but here is the best I can do'. It was about three percent higher.
Also, I read the paperwork beforehand, all hundred pages or so. But with the changes, they produced an all new set of paperwork claiming to have only changed the rate. I have an hour, two at most to close the deal or risk losing the home.
BTW, I did take responsibility for agreeing and am paying that sucker down as quick as I can. However, now the bank is in trouble and I'm supposed to feel sorry for how it screwed so many of its customers.
When will corporations start taking responsibility for themselves, their mgt, their lobbyist, and their brokers?
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rdy2rck5 months, 1 week ago
You are right about bankers greed HM but it also took a greedy public to fall for it
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amazed5 months, 1 week ago
How exactly did the banks not play fair? Did they change the terms of the loan after the agreement was signed? I doubt it. The terms of the loan -- the amount, the interest rate, the index and the trigger for interest rate changes in variable loans, the balloon payment (if there is one) is all spelled out in the mortgage papers that have to be signed. If the people didnt' read them, that's hardly the banks fault.
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