Foreclosure Stripping
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Foreclosure Stripping is the process in which the owners of a foreclosed property will remove fixtures and fittings from the property in an attempt to salvage some of their investment. Malicious foreclosure stripping is done by home owners who render damage throughout the property to significantly decrease its value and cause resale to be almost impossible. Foreclosure stripping has been a growing trend in recent years [1] and has reached an all-time high in 2009 because of the economic downturn.
Contents
Problems with foreclosure stripping
The main problem associated with foreclosure stripping is devaluation of property in the local area.[2] Because homes are being sold as incomplete, the prices are much lower than others in the area, which brings down the local average property value. Foreclosure stripping is also a problem for banks, as mortgages are unavailable on incomplete properties meaning that for resale to occur, a cash buyer is necessary.
Penalties of foreclosure stripping
Foreclosure stripping is considered a crime in most states and goes against the details of the foreclosure deed signed by the home owner although some would argue that the home remains with the owner until the date at which it is officially signed over to the bank.[3][4]
In the past, banks have just recovered the cost of the damage from their insurance brokers, and the perpetrators have never been prosecuted. But recent cases have seen thieves convicted of burglary, a class 4 felony. States such as Arizona have their own FBI task force to investigate and arrest those guilty of property stripping.[5][6]
Items that legally must remain with the foreclosed home
Any item that is a built-in feature of the home must remain intact.[7] This includes:
- Built in appliances such as stovetops and dishwashers
- Cabinets, shelving and countertops throughout the property
- Built in air conditioning units and furnaces
- Plumbing and copper pipes
- Electrical wiring and fixtures including outlets, lighting and ceiling fans
- Doors and associated hardware
- Flooring, including tiles, carpets and decking
- Windows and vents
- Sinks, tubs, toilets, showers and associated hardware
- Landscaping and fencing
- Built in pools and spas
References
- ↑ Shriver Center, 2006, http://docs.google.com/viewer?a=v&q=cache:0KbsEbE9GNUJ:www.povertylaw.org/about-us/newsroom/news-releases/mar-apr-review.pdf+%22foreclosure+stripping%22&hl=en&gl=us&pid=bl&srcid=ADGEESgcp7hOq843NCh-Jz6Fi6Tlk2R0b6vgzRT05e9JI1loTAn9A9Ud3kBFzvkEsLOEsrUA70kQb33MTMPPsMdrX2Jvk8vxnXpfdcwlgHr6w6NPLYPSVGPnaikRC490W11oP1mVhEUM&sig=AHIEtbREIZNIiWG2sFoAVFCCJpsZ7A_cUQ
- ↑ Naples News, June 2009, http://www.naplesnews.com/news/2009/jun/24/sale-anything-and-everything-inside-foreclosed-hom/
- ↑ . The Wall Street Journal, March 2008, http://www.realestatejournal.com/buysell/markettrends/20080331-phillips.html?rejpartner=newsfeed_res
- ↑ St. Petersburg Times, February 2008, http://www.sptimes.com/2008/02/19/Business/In_home_foreclosure__.shtml
- ↑ Arizona Republic, September 2009, http://www.azcentral.com/members/Blog/CatherineReagor/61734"
- ↑ Arizona Republic, September 2009, http://www.azcentral.com/12news/news/articles/2009/09/08/20090908junkyhomes0908-CP.html
- ↑ The Oakland Press, February 2009, http://www.theoaklandpress.com/articles/2009/02/07/news/local_news/doc498e7101415bd940026850.txt
External links
- http://www.youtube.com/watch?v=qbUk4H3FRMw - Video from the TODAY show on Foreclosure stripping
- http://www.anthonyboydston.com/general-real-estate/question-and-answer-foreclosure-stripping/ - Questions and Answers regarding foreclosure stripping
- LindaStrasberg.com
