Wednesday, August 31, 2011

Maintenance of Foreclosures and Bringing up to Code

This blog post in the source below has some teeth and some issues.

On one hand, some of the properties require more maintenance than just mowing the grass. 

On the other hand, if banks/investors will be required to bring the homes up to code, it may mean the homes must be up to code when loans are created or when refinanced or periodically during the life of a loan. 

Either alternative will require more money and therefore should either drive loan costs higher or restrict the creation of loans to those properties that would pass a complete county code inspection.

Note:  I heard through the grapevine of a large mega bank (that recently got a $5 billion cash infusion), is known to know all local codes and never does anything more than what the code requires, even if it's the right thing to do to fix something unsafe in the eyes of the neighborhood.

Source:  http://blog.heartland.org/2011/08/sweet-vacant-home-chicago/

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