Has the Real Estate Market Turned Your Neighborhood Into a Slum?

BREVARD COUNTY, Florida — Through hard work and thrift, many Brevard County residents thought they had earned their slice of suburbia and (theoretically)  that their neighbors would have had to go through the same hurdles as they to earn the right to be in the same neighborhood.

However, with millions of homeowners and ‘flippers’ underwater, many unscrupulous landlords will rent out to anyone while the property goes through delinquency and foreclosure.  The worst resulting case scenario of government intervention over the last decade in the housing market is that grandmas often find themselves sandwiched between grow houses and gang bangers.

Other consequences of the upside down real estate market are landlords that do not pay condo fees, perform credit checks or background checks (including convicted sex offenders who may not be permitted to live in a particular location), unkempt lawns, code violations, and empty houses that serve as havens for vermin such as rats, roaches, and termites.

One viewer expressed the point of landlords:

“Yes, many neighborhoods have gotten worse. Yes, in many areas, over 70% of rental applicants have evictions, criminal history and poverty level income. Before you lay our current society’s woes on the usual scapegoat, the landlord, let’s look as some facts.

1. Real estate investors who have poured their life savings, 80 hour work weeks and put up with more grief than a average person can possibly imagine; have lost everything in the last five years. Their rental properties have lost 50% to 70% value. Rental rates are down as much as 30% since 2007.

2. Instead of sharing the burden of horrendous property value losses; mortgage lenders have responded with fraudelent foreclosure actions. If they are uncontested in court, the majority of lenders recover houses in foreclosure with forged mortgage assignments, phony note endorsements, prejured notaries, signors and witnesses to documents.

3. The typical foreclosure judgment is for an amount that far exceeds market value of a property. The lender gets the property back at the foreclosure sale because no one is going to pay the judgment amount. The lender then gives the house to a Realtor who puts the property on the market at today’s value and the lender takes the loss. Now, what if the lender worked with the original owner/investor, took the loss of loan principal up front and shared the rental income and future appreciation. Foreclosure, vacant houses and desperate investors might be avoided. Sales on post foreclosed houses creates lower sales comps which appraisals of other houses are based on. It is a vicious cycle.

4. So, if a landlord who has lost many years of blood, sweat and tears on rental properties and has reinvested most of their measley rental profits back in to properties, i.e. stolen air conditioners, stolen refrigerators and stoves, burn holes in custom kitchen cabinets and of course eviction proceedings to take back a rented house from a tenant that has stiffed him/her for months of rents and trashed the house, etc.; what right does anybody have to call that broke landlord “unscrupulous” because they are trying to salvage what ever funds they can out of a house before they lose it forever. This is not an excuse for landlords who do not adhere to Florida Statute Chapter 83 Landlord/Tenant Act.

5. Very few investors make money renting houses unless there is no mortgage. The objective is to hold a property for decades, pay down the mortgage, property taxes, rising insurance rates and all the other aforementioned expenses with the hope of some day selling the property that has appreciated in value. The problem now, property values have been set back to 1990s levels. Decades of appreciation have been lost.

6. All the alleged assistance for homeowners  during this historical cataclysmic crash of the housing market does not apply to investment properties. How does a landlord qualify for a loan modification when income is a fraction of expenses?

There is plenty of blame to go around for America’s deteriotaing society. Before you hang a landlord, walk a mile in his/her shoes.

So tell us in the comment section below:

How has the upside down real estate market affected your neighborhood?

Do you talk to your new neighbors?

Do you have to pay more condo fees to make up for delinquent owners?

Did you give up on gardening because the neighbor’s weeds are too intrusive and overwhelming?

Are you awoken by loud noise at night, fights, cars, fire engines, police cars, etc?

Do you feel safe when you walk in your own yard?

Do you take packages anymore from UPS, FedEx, or the Post Office, or would they get stolen?

Have you heard gunshots from your house within the last 4 years?

Would you leave if your home was not underwater?

Comments are closed.