Banks, like many homeowners, are walking away from foreclosed properties
Bank walkaways; Never heard of the term? Bank walkaways are when banks walk away from foreclosed properties. And, the reason you may not have heard of the term is because banks are doing it "on the down low," so to speak.
Why are banks abandoning foreclosed properties? As explained in the New York Times article, Banks Starting to Walk Away on Foreclosures:
"Banks are quietly declining to take possession of properties at the end of the foreclosure process, most often because the cost of the ordeal -- from legal fees to maintenance -- exceeds the diminishing value of the real estate. . . . The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches."
As stated in the article, the problems left behind when banks walk away from foreclosed properties are numerous. Following are just a few.
Bank Walkaways Leave Homeowners Responsible for Homes They Were Booted Out Of
In a normal foreclosure process, when homeowners are foreclosed on, the lender (eg, a bank) assumes responsibility for the property until it is resold or rented to another dweller. But, when banks walk away, the responsibility for the property reverts to the person who’s name is on the mortgage -- ie, the person foreclosed upon in the first place.”
But, they have usually moved on and don't have the money to keep up the property. In many cases, the property has been sitting empty for months and may be destroyed beyond repair, leaving the "broke" owner responsible for the clean up, clear out, repairing and/or demolishing of the property.
As the New York Times article expounds on, many homeowners are often frustrated because, they wonder, "Why was I foreclosed on in the first place if the bank was just going to walk away from the property? I could have stayed in my home."
As a side point, many don't know who to send mortgage payments to, even if they are in a position to resume paying the mortgage.
Bank Walkaways Lead to Increased Crime
Foreclosure homes for sale -- because they are uninhabited dwellings -- invite all kinds of crime, eg, graffiti, broken windows and doors, vagrant squatting and more.
What's the solution to bank walkaways?
Foreclosure Cleaning Companies Help Clean Up the Mess Bank Walkaways Leave Behind
One of the first things that need to be done when a bank walks away from a foreclosed property is to make sure that it is properly cleaned and secured. This includes boarding up windows and doors, maintaining the lawn, and removing junk and debris. A full-service foreclosure cleanup company can do all of this -- helping to keep neighborhoods safe until the problem can be resolved.
Photo:
http://www.prlog.org/
