Foreclosures- More Than Just A Problem For Homeowners
As the number of foreclosure filings in the first half of 2011 dropped by twenty-nine percent from the same period last year, several problems still loom for those caught up in the foreclosure crisis. An unknowing person would think this reduction in filings means a better economy and more stability. But we know that’s not true. Unfortunately, the lower number of filings is likely the result of investigations into bank procedures during the foreclosure process. The unemployment rate is still high, and many people have nowhere to go. Once the “document review” is completed, the number of default notices being sent out is going to increase at a rapid speed.
There are several concerns that arise when discussing the current real estate market in conjunction with the number of foreclosed homes. The general view is that the housing market is not going to recover until the number of foreclosure properties dwindles to a manageable level. While the drop in the number of foreclosure filings helps keep the home prices above what they should be, as soon as the filings increase again, this will no longer be the case. Realtors agree that with the number of foreclosure homes available, price is still the main factor, above the condition and location of the home. What’s going to happen to those prices when there are even more homes available due to the foreclosure crisis? Once the filings go up, there will likely be the same backlog in the court system that previously gave birth to the infamous “rocket docket.” Then the cycle will start over again, with documents getting prepared at rapid speeds and attorneys questioning the validity of such documents.
What about the homeowners and homes that have already been swept away in the foreclosure process? A majority of the homes where homeowners have been forced to leave are sitting out there – unattended, uncared for, trashed, and vacant. Recently, Wink News did a segment on a home in Cape Coral where squatters had moved into the property and acted as if the homeowner had rented it to them. This was news to the prior owner, who thought the bank had foreclosed on the property and taken it. If nobody paid attention, the squatters could have lived there without paying anything, at least until the bank finally foreclosed on the property! This is becoming more common in Southwest Florida as the number of vacant properties remains high.
Another problem the community is faced with because of the high number of vacant properties is teenagers going into the homes and having parties. These parties bring with them an array of issues: illegal drug use, underage drinking, destruction to property, and injuries caused by these, and other, behaviors. Especially during the summer, when school is out and kids are roaming around with nothing to do, these parties are contributing to an already problematic percentage of teenagers engaging in illegal and dangerous activities.
Finally, another trend we’ve seen is an increase in the number of pets that have been displaced as a result of the high number of homeowners forced to leave their homes. With homeowners already faced with the difficulties and stresses of finding employment, paying their bills, and finding a new place to live, pets are often seen as unnecessary expenses. Animals are either left at the residence or dropped off at local shelters or fields. This causes overcrowding and overpopulating when pets are left to fend for themselves.
All of these problems can be avoided if the lenders work with the homeowners to help them in this rotten economy. That would only benefit everyone – the homeowner would keep his home; the neighbors will not have to deal with destroyed homes on either side of them; pets can live with their owners; and the banks would get paid. Until banks realize this and start working toward a common goal, these problems will never go away. If a home is vacant, banks should work toward finalizing the foreclosure on that property and get a new owner in there. If a distressed homeowner is reaching out for help, banks should reach out a helping hand so that everyone wins.
This blog was written by Attorney Danielle Zemola of The Dellutri Law Group, P.A. Ms. Zemola defends homeowner in the foreclosure process and in the Bankruptcy Court.
