There are 1553 registered vacant homes in St. Paul, many of them are foreclosures. They have been winterized and are unheated. They are not clean inside, and many have some of the previous owners belongings in them.
Many are category 2 vacant homes. They have code violations, some are category 3 vacant homes, they have multiple code violations. Sometimes an investor bought the home and started remodeling it. There are no appliances and the kitchen sink is missing.
Some have holes in the walls, others have graffiti on the walls. Some have children’s toys laying strewn about, others have ice on the kitchen floor. Sometimes the lights work but almost never in the basement. Sometimes the doors are not locked, sometimes there is a for sale sign and other times there is not.
The homes are not marketed, because they are no longer homes. They are files that some employee of a large corporation is responsible for. They are in the MLS with inviting messages, like "bring a flash light", or messages indicating that it may take up to 60 days for the seller to review the offer. All measurements should be verified and special addendum’s that don’t make sense or in some cases do not comply with Minnesota state laws must be filled out and sent with any offers.
Banks can’t sell real estate so they sit on the market for a couple of months longer than any other type of listing. Some are over priced, and the prices will have to come way down becasue buyers beleive that foreclosures are a bargain. Once they find out that a home is a foreclosure they will pay much less for it than they would if it were not a foreclosure. They sit vacant and there might be one next door to you.
Banks are not doing their part to keep St. Paul Beautiful. They really do make lousy neighbors. Their inability to sell real estate is contributing to the inventory of derelict vacant homes on the market. It is hurting our local economy, and diminishing the quality of life in our neighborhoods.
Related posts: Foreclosures
When the Bank is the Seller
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Teresa – Unfortunately, Banks do not care about the neighborhoods. You have aptly described what a foreclosure looks like in many neighborhoods around the country.
Teresa- it’s not just St. Paul. I have been showing them to one of my clients here in Fairfax, VA. Buyers have to pay to get all the utilities turned back on if they want to do a home inspection. Which wouldn’t make a difference because the bank isn’t going to fix anything. Seeing signs of roaches and rats are the worst. But I put my foot down with my clients when there is a hole in the roof, water damage and mold.
It’s gotten so bad in some spots in Fairfax that the agents are starting to put in the listing “NOT BANK OWNED!”
The banks wouldn’t fund loans for these homes if they were investing in them- so I don’t know why they think that people will buy them.
We are also starting to see requirements that the banks are requiring potential buyers to get re-qualified through them & implying a better loan & terms if they obtain the new mortgage through them. Gee- I wonder what THAT appraisal would look like.
Then- they wait 3 weeks to decide and then tell the buyer then have a week to close.
People don’t realize that the bank doesn’t price these properties to sell at market. They are priced so the bank doesn’t lose money on its loan.
Not only are banks lousy neighbors in this way, but the banks are really STUPID because they pay the taxes on the houses at values that are, de facto, inflated. The values at which the homes are taxed are nowhere near the current value of the house.
If the banks had any sense, they would be filing numerous appeals of the taxes and submitting evidence of lower value like, oh gee, it has been listed at this low price for a LONG TIME and there are no takers.
You would think bankers, who worship Mammon, God of Money, would have figured this out a long time ago and would at least TAKE A SHOT at appealing the taxes instead of just writing a check.
Tried to purchase a home in Dayton’s Bluff area knowing what needed repair up front. Was forced to be pre-approved through bank that owned it. Already had mortgage officer elsewhere and was pre-approved through them. Was ready to with closing and then discovered that the city’s inspection required a list of things done “before” a certificate of occupancy would be given. The bank that owned the property would not put the money into it and the lender would not give a conventional mortgage without the certificate. Caught on the fence, we had to abandon our purchase. Interestingly, the house has come down $20k in the month since we withdrew our offer. One of the fixes that was “mandatory” (and all the fixes were-regardless of how minor) was external painting. How can you paint a house in the winter? Tried working with the city inspector but he insisted that all must be done. House has been sitting for 1.5 years now. You’d think they would pave the way for buyers who would improve the property, pay their mortgage and the taxes. One other thing–the taxes are outrageous on this house considering the neighborhood.
Ruth – the city can requite repairs before a home can be lived in. The bank does not have to fix anything, neither does any other seller. I am though very concerned that the bank would have you use their financing. were the fees higher than they would have been through your previous lender? Was the property listed through a Realtor or directly through the bank?
The city inspector never backs off. I could write a whole post on how the system works, and believe me there is a system. As for the home, banks can’t sell real estate, no how no way.
We also looked at a foreclosed house in the Dayton’s Bluff Neighborhood. It was an abandoned rehab project, having been gutted, insulated and sheet rocked. Much of the finishing touches were still needed, such as flooring and trim.
The seller’s agent said 2 offers were already rejected because the potential buyers didn’t have rehab or construction financing.
The bank selling the property required potential buyers to get pre-qualified with them, but that bank didn’t have any rehab or construction money available. So what is the point of requiring pre-qualifying buyers to pre-qualify with them?
Prospective buyers of this property would also have to pay to get utilities turned on to inspect the plumbing and heating system.
The buyer was required to pay all assessments, including assessments in excess of a year’s unpaid taxes. The taxes were, of course, exorbitant for the state of the home.
We abandoned pursuing the property, we are qualified for first-time home buyer’s financing, getting rehab or construction financing is beyond our reach.
Since we looked at this property it has gone down 20k, and sadly enough, just last week, two pillars on the front porch were knocked down, leaving the awning in a perilous state of disrepair.
It now saddens my husband and myself to drive by this Dayton’s Bluff landmark, which we both do everyday on our way to work. We wonder how much more vandalism will happen to this property before it gets a new owner to give it some TLC.