While we all know what a foreclosure means, many of us don’t know what really happens to a property once it enters the process. Who owns the property? Who is responsible for maintaining the property? How does a foreclosure affect the neighborhood? Are there any laws that deter criminals from a foreclosed property? All of these questions raise important points about a foreclosure and show us that the negative ramifications can go far beyond evicting the family that lives there.
The Sour Side Of Things
Once a home has received a foreclosure notification, the clock starts on the countdown to eviction day for the family who lives there. In some states, families may have less than 30 days to fight the foreclosure through loan modification or other mortgage relief solution. After the family has evacuated the premises, the home is generally left in disarray. It isn’t uncommon for a home to suffer accidental, and in many cases intentional, damage when a family leaves the home. Now the lender is left holding a property with the responsibility of selling it if they hope to recoup their lost money.
While some view the problems faced by the lender as well deserved, the truth is an abandoned home does no good for the neighborhood. Not only will the lender be faced with a possibly damaged home, but the neighborhood must tolerate an empty home that soon becomes overgrown with weeds and displays a poor aesthetic appeal. Further, a single foreclosed home has the potential to affect the home values of surrounding neighborhoods and even attract criminal activity. It isn’t uncommon for foreclosures to become the play site for criminal activity or mischievous children at play. When this happens, the negative stigma associated with a foreclosure becomes highlighted and it could be months or even years before the home is successfully sold.