It’s a crazy, crazy world these days. Last night my daughter had her kindergarten orientation at the elementary school near our house. Yes, it was a milestone that came way too fast for us. It’s hard to believe it’s been 5 years since we were blessed with our wonderful daughter.
Anyway, I was walking down the hall of the school when I recognized some neighbors that live a couple blocks from our house. They live directly across the street from a house I posted about previously. The people that bought that house paid $614K for it about a year ago. Apparently they got over their head and then decided to sell. Unfortunately the market fell out from underneath them during the short time that they were there. They tried selling at $599K, and then lowered it all the way down to $539K. The house didn’t sell and they moved out almost two months ago. The "for sale" sign sat out front listing the home for sale but nothing seemed to happen. The sign is gone now.
So, like I was saying, I saw the neighbors across the street from this house and happened to overhear them as I walked by. They were explaining to another neighbor that the people had moved out and took all the fixtures, sinks, trim etc from the house. Apparently they took pretty much anything that was or wasn’t nailed down. I had read about this but had never actually seen it happen. In other areas, I have read that banks would offer a couple thousand dollars if foreclosed homeowners left the home in good condition. Apparently these folks didn’t get that offer.
I completely disagree with these people’s actions. Because they overpaid for a house that they couldn’t afford, they decided to punish the lender that gave them the money to move in. Maybe the lender shouldn’t have loaned them the money, but ultimately these people made the decision to sign up for terms that they couldn’t afford. It’s just morally wrong to screw the mortgage company like that. Geez, I don’t even like mortgage companies very much and I still think it’s wrong! Bottom line is that the bank is going to take a huge loss on this house and the neighborhood is going to have to watch the house deteriorate until someone buys it and fixes it up. The crazy thing is that it was a beautiful house that needed nothing. Now it’s a house that needs PLENTY.
Just today we made an offer on a bank owned house that the previous owners had stripped. They left the copper pipes, trim and cabinets, but took the chandeliers, towel rods, the basement toilet & sink, the thermostats, and even the garage door openers.
I agree with you that this sort of ‘revenge’ isn’t right. People sure don’t like taking responsibility for their own actions!
Yeah, people who do this are pretty deplorable. I get that you may be upset about losing your house, but these people need to look in the mirror as well.
The sad part is that it isn’t close to over. As bad as it has been, it is likely to get worse. I just blogged this morning that I’m seeing similar things in my community, and we have at least a year if not longer to go.
Not to add another “me, too” to the list but I disagree with stripping the house as well. If the problem weren’t so widespread, I’d think the companies would go after the homedebtors for damages. Then again, they’ve lost the home…how much could the bank get from them?
On the flip side, what do you all think about the morality of the mortgage companies making ARM loans with promises of refinancing later…only to then stiff-arm the mortgage holder when that time comes? It would seem to me to be pretty straightforward – convert the loan and keep the revenue stream (albeit slightly reduced as the principal is paid down) or take a huge loss on the loan. Am I missing something, thinking about it from the mortgager’s end?