Cities Spending Money to Reduce Foreclosure Eyesore

by Peter Vernon on Foreclosure Crisis

In metro Detroit, local residents are getting concerned about the growing number of foreclosure properties in their neighborhoods. Because of their dilapidated conditions, these foreclosed homes are becoming such eyesores, driving down market values of nearby houses.

Features and amenities such as swimming pools and sprawling gardens are now being considered as nuisances and liabilities. The overgrown lawns are no longer attractive and the empty pools are even posing risks to the health of the local residents.

In an effort to minimize the negative effects of these foreclosures on these communities, local officials have decided to create policies and spend money to fix up these properties. Trees are being cut, pools are drained and lawns are mowed in order to make the neighborhoods more attractive to buyers.

Some of these foreclosed homes also receive decorative facades to cover the windows and doors that have been boarded up. Aside from making the home appear inhabited, it also protects the property from squatters and other vandals.

Foreclosure properties are homes repossessed from their owners due to mortgage default. These properties are usually sold off in foreclosure auctions. But with the millions of properties that entered some stage of foreclosure in the last couple of years, the inventory of foreclosure properties has risen dramatically.

Because of the overwhelming supply of homes for sale in the market and lack of demand, home prices have dropped considerably. Last month, national foreclosure rate increased by another 49 percent, clearly showing that the foreclosure crisis is not letting up.

On the other hand, real estate investors and first time buyers are considering these foreclosure homes a better choice than existing homes and newly-constructed ones because they are generally more affordable. Of course, buyers must keep in mind that these foreclosures are sold ‘as is’ and they will have to spend more on repairs.