Join Date: Apr 2012
Thanked 533 Times in 287 Posts
I'm pretty sure servicing companies flat out LIE to the banks......
My proof is the many homes i have been getting lately that are teardowns.
Had a HUD in August. 1902 victorian. Knob and tube wiring, Galvanized plumbing all leaking, Foundation crumbling and home leaning on one end. Still had to "sales clean it" Property closed 2 weeks ago and is being demo'ed.
Had a dump in a pudunk town 120 miles west of me in September. Average home in LIVABLE condition brings $30-$40,000 in this town. Home is in demo condition, Rats and mice infesting it, Totally trashed, 2 torn up mobile homes on the property, It would take a crew of 4, 2-3 days to "clean" it and it would still look like chit. Myself and the agent assigned have both said to demo or sell as is. Nope!!! Gotta trash it out and sales clean it!! Middle of winter here now, No electric as there is a $1200 past due power/water/sewer bill with the city, Will have to wear Hazmat suits, (guess that will keep my guys warm?) Ect. Trashout, trailers, sales clean is going to run them $12,000. They will be lucy to get 20K for it in the end clean or not. If they don't like it OH WELL! Same company that wants to pay me a $1,200 trip charge to do a property 750 miles round trip from me.
Got another one pretty close to me. Have done 3 Line X Lines in 2 years. 1920's 900 Sq Ft Farm house, NO LEGAL foundation (fieldstones sitting on top of the ground that are crumbling). Pipes broken to hell. House WAAAY out of level due to fieldstone foundation, Roof decking rotten under tin roof, Lead Based Paint in and out, All windows and doors shot, No insulation. Value is in the lot. (realtor and appraisal state house as having NO VALUE) 4.5 Acres and a nearly new 2 car shop with 10' doors and a heated floor. Lots that size are selling for 60-80K. My bid was $69,000 to pour new foundation, replace roof, replace windows, replumb, Re-mediate LBP and in the end it's still a 1920's 900 Sq Ft farm house with little value. By the time the bank gets this bid it will be nearly $90,000. The last list price on the house AS IS was $109K. Get a work order yesterday to find plumbing leaks for $125 and bid to repair. The bank is into it for $182K LMAO!
Got another one, 1st trip i made to this property was 10-12-2009 Issues have been noted OVER AND OVER AND OVER again. Property is in a VERY wet subdivision, (A filled in swamp that was built out during a VERY dry year.) Nearly EVERY home has water issues here. There are MANY lawsuits against the builder. At this time, either the the home has settled in the mud or the floor has heaved from pressure of the water below. There is water coming up in the cracks of the floor. The middle of the basement is nearly dry while there is 2+ inches of water around the perimeter. There are no sump pumps or sump pump basins in the basement. Only a sump pit on the exterior of the house. I told them they need to hire a STRUCTURAL ENGINEER as a general contractor such as myself is not qualified to determine the full extent of the damage. (Engineer will run ROUGHLY$4,000 to $5,000 and my off the cuff estimate of what i think is needed for repairs is around $25,000) The entire stairway, stairway framing ECT. is full of BLACK mold. The engineer needs to make their recommendation BEFORE the mold can be addressed as mold will keep coming back as long as water keeps intruding. All floors in main level of the house are warped and there is a high moisture level in the home. Off the cuff estimate to replace all floating wood flooring and underlayment after remediation, $6,000) There are also mold spores throughout the house. (off the cuff mold remediation throughout home including basement, $15,000)
It just seems to me the servicing companies are lying to the banks telling them "We can fix this!" What a waste of money not to mention a pain in the arse.....................