Pittsburgh Homes Daily

Reuters had an article on Monday about the increasing number of squatters living in vacant foreclosed homes. It is written from the perspective of the mortgage companies and their real estate agents detailing the squatting problem. But I’m not feeling too sorry for the new owners of the foreclosed homes. They aren’t particularly good neighbors.

Cities across the nation are now, or are considering, suing lenders and banks for there role in the foreclosure problem and the consequences of the vacant foreclosed homes, according to the USA Today. A recent statement indicated that Cleveland would have to spend $65 million a year over 5 years to handle abandoned homes. And that doesn’t count the economic effect on the neighbors because of decreasing property values. Or probably the problem that mosquitos from swimming pools at foreclosed homes could pose (see the wsj article).

The problem of vacant homes is one that Pittsburgh has known all to well. At various points in recent history, Pittsburgh has tried to make an effort to deal with the problem - through legislative or other means. Noteably, it attempted to board up vacant buildings to secure them a few years ago at taxpayers expense.

Ideally, foreclosed homes would be put up for sale on the market and quickly sold by the bank - since they aren’t in the real estate business. But now that they have so many foreclosed homes - and there’s no indication that they’ll be out of the real estate business quickly, it’s time a real solution to the problems of vacant homes and squatting are worked out. I don’t think anyone is happy with the current situation.

Read other articles on squatting and foreclosures here and here.