Many local contractors lately have been working overtime as a
result of
”
the deferred maintenance and out and out cannibalism, theft and
destruction
”
seen in many foreclosed homes, a local home inspection expert
told the Free Lance.
HOLLISTER
Many local contractors lately have been working overtime as a result of “the deferred maintenance and out and out cannibalism, theft and destruction” seen in many foreclosed homes, a local home inspection expert told the Free Lance.
“Sometimes you get in these places and there are no appliances, light fixtures, or heaters,” said Robert Vierra of Hollister-based Win Home Inspection, who added that he has seen air-conditioning units and built-in fireplaces torn out, as well as copper wire theft and “green pools” in back yards.
Some of the “cannibalism” to which he referred is a result of homeowners who are planning to move from a property they can no longer afford, and some is a result of thievery after the homes are abandoned. It all, however, adds up to a lot of contracted work before the homes are in decent shape for sale.
“A lot of the bank-owned homes come to us in rough shape,” said Richard Webber of Hollister Realty. “Broken windows, ruined carpet, doors and walls with holes, entire air conditioning systems removed – pretty much anything you can imagine.”
He went on: “It is the owners house until foreclosure is complete, so they can do whatever they want.”
Local foreclosure activity has jumped from 165 San Benito County homes three years ago getting involved in some stage of foreclosure to 1,724 so far in 2008. The effects on the community have been wide ranging, from green pools and brown lawns, to drug activity and theft in formerly quiet neighborhoods. The city, meanwhile, has been trying to get a tighter grasp on the problem and recently assigned an intern to tackle the difficult problem of cataloging vacant properties to hold owners, most often banks, accountable.
Most of the foreclosed homes that Barry Perdue of Hollister Roofing has been fixing up were “well past due for a new roof,” he said.
“This year is much busier than last year,” the business owner said. “We are getting calls all the time, and I just finished an estimate on a roof for another foreclosed home.”
Perdue has been seeing buyers “crawling out of the woodwork” to get the inexpensive foreclosed properties and, he added, “It has certainly increased our business.”
Hollister-based Bay Area Glass and Windows owner Linda Lemos said her company has been getting plenty of calls lately.
“Real estate agents call us because they are finally selling some of these foreclosed properties, and before they close, they have to get broken windows replaced,” Lemos said, adding that there are times when every window in a house need replacing.
The city, meanwhile, has been trying to minimize the damage already done to many local properties. Code enforcement official Mike Chambless said his office has taken on a new intern who has “visited every foreclosed property and ranked them, then has restarted the process of contacting banks to enroll them in our program.”
His office for several months has been attempting to force distant banks to maintain their foreclosed properties or pay fines.
“I just signed a letter for the Hong Kong Shanghai Bank Co., also known as HSBC,” said Chambless, nothing that HSBC owns several run-down, foreclosed properties here.
Business owners like Vierra, nonetheless, are reaping some benefit from the turbulent housing market. The market for contracted work, meanwhile, is drastically different than three or four years ago, he said.
“Eighty to 90 percent of the homes I inspect are bank owned these days,” said Vierra. “It may have actually been closer to zero percent in 2005 than to 10 percent.”
