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The federal government is sending Sacramento almost $32 million as part of the bailout in the housing market crisis. It is said that this money is to help in the deterioration of neighborhoods hit hard by foreclosures per The Sac Bee article. Hmmm
Let me get this straight.
- First, the banks give bad loans.
- Owners try to sell their house by Short Sale
- Banks don’t respond or accept Short Sale offers
- Banks evict the owners
- House is for sale as Foreclosure
- Banks take their precious time accepting any offers
- Meanwhile property is vacant, subject to vandalism and no longer appealing
- Bank refuses to fix/repair property
Now, comes money from the tax payers to the same city to repair homes that the bank could not sell. Now, do you think all of these things would have happened had the banks renegotiated the loans with the original owners and left the owners in the house? Would Sacramento still need money from the federal government, nearly $32 million to fix these houses up and turn around and sell them? The city of Sacramento may pay developers to buy foreclosed properties, fix them, rent them or sell them. Looks like Sacramento will be in the real estate business and flip homes for sale.
Let’s go a step further, all those homes the banks foreclosed on are not paying property taxes. Who suffers when property taxes are not paid? You guessed it, we do. Cuts have to be made by the city. It is common sense that when the economy is suffering, crime goes up. And yet, it was announced on October 17th Sacramento police services will endure yet another $1.8 million cut. This means for you and me:
- longer wait times for 911 calls
- “After hour” response times cut for robberies, sexual assaults and burglaries
- Cut in Patrol officers
- Increase in time for response to low priority incidents
Hey, maybe we can get more bailout money from the feds after we implement these cutbacks to clean up the next mess. When will it end?
Instead of pro-active we seem to be re-active. As my father use to say…”a day late and a dollar short.”
No sense in re-negotiating those loans to have homeowners stay in their houses and pay taxes, is there?
Here are ALL of the Bank-Owned Homes for Sale in the entire Sacramento County area.
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Other Foreclosure and Bank Owned Home Articles:
Another Life Raft is Thrown to Homeowners
Search Foreclosure Homes For Sale For Free
The Lights Have Gone Out For Many in Foreclosure
Short Sale and Foreclosure Real Estate Tax News
Sacramento Real Estate Writes Letter to All Banks
Sacramento Real Estate Fraud-Homeowners Read This
Sacramento Short Sales and Foreclosures
Are Short Sales and Foreclosures A Good Deal?
Foreclosures, Buy or Don’t Buy?
Things are crazy these days with the banks. REOs and Shot Sales are getting harder and harder to work with. The banks need to step it up and work better with offers.
Things could have turned out for the better if banks would have re-negotiated loans in the first place.
Dylan, I couldn’t agree more. We are and will continue to see the repercussions of all these vacant homes as long as the banks continue to not renegotiate the loans. Seems to me that with this bailout there should have been some stipulations made upon the banks.
Hi Gena: Thank you for your thoughts presented here in your post.
Over at Housingdoom.com, “Twist” highlighted an article stating that “in a full 45 percent of the delinquencies, they’re finding nobody home.”
As you’ve stated, these vacant homes are going to increasingly cause a problem.
It’s absolutely dumbfounding to me that the banks did not do a better job from the beginning in re-negotiating these loans. All of us are now paying the price, the banks included. As you know, every time a bank has to take back a home it costs them a ghastly amount of money and they have to actually realize the loss.
I’m not an economist but it certainly seems to me that it would’ve been much more beneficial for all parties involved if the banks would’ve worked together with homeowners to modify / adjust the problematic loans.