“About a third of all of the foreclosed properties nationwide have been so damaged, either by the previous owners or by criminal gangs coming in after the foreclosure, that they no longer qualify for standard mortgage financing,” [researcher] Thomas Popik told CNN.
Popik says responses from thousands of real estate agents nationwide to the questionnaires he sends out quarterly indicate that badly damaged foreclosed homes … are a much bigger element of the national housing picture than officials in Washington have acknowledged.
“In many cases, it costs so much to rehabilitate these houses, it’s just not cost-effective,” he told CNN. “And the properties are eventually going to be bulldozed.” (Source.)
Watch a pair of videos from Southern California. Banks acquired brand new homes in foreclosure processes, the homes were not quite finished and the banks razed these homes rather than fix code violations. (Click here to see the video clips, and more here.)
Brand new nearly completed homes have a negative value because of regulations and are therefore destroyed.