Neighbors concerned about foreclosed properties
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A broken window at a home at 574 S. Main St., Janesville.
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A home at 574 S. Main St., Janesville, has what appears to be mold growing near the mailbox and a broken window.
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Damage near the front door of 574 S. Main St., Janesville. Appears to be mold growing on the side of the house.
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A home at 2118 Ruger Ave., Janesville, with the Hand in Hand Learning Center in the background. There is a dent in the garage door and some items left out in front of and beside the house.
JANESVILLE — There goes the neighborhood.
That’s the opinion of one Janesville couple who have watched a neighboring property plod through foreclosure.
From their perspective, the goings-on at the home on Janesville’s east side have really involved not much going on, other than a yard that’s taken on the appearance of a jungle.
The owners are long gone, and the bank has called in the mortgage. The property will be sold at a foreclosure sale before the end of the year.
In the meantime, the grass and shrubs grow, the snow will soon fall, and the neighbors’ frustration escalates.
“Something’s got to be done,” say the neighbors, who prefer to remain anonymous in the interest of neighborhood harmony. “This vacant property is a detriment to our neighborhood.”
It’s no secret that foreclosure filings have increased in Rock County. The clerk of circuit court’s office reported 980 in 2008.
So far this year, there have been nearly 1,100.
As the filings have increased, so have the neighbors’ phone calls to anyone connected to the foreclosure process, which can stretch from months to a year or more.
“We certainly have received more calls,” said Kelly Lee, neighborhood development specialist with the city of Janesville. “People move out, it goes into the process and the house just sits in limbo.”
Lenders get the calls as well, but liability concerns typically tie their hands until they have free and clear title to a property after a sheriff’s sale.
Most local lenders, however, will try to see that grass is cut and walks are shoveled. Lenders often will encourage the property owner to keep up their property for safety reasons.
“We work in this community, and it’s our responsibility to do what we can, when we can,” said Mary Willmer-Sheedy, community president of M&I Bank in Janesville.
But the overwhelming majority of lenders pursuing foreclosure actions in Rock County are not local.
“We often have trouble contacting or getting a response from some of those banks,” Lee said.
‘It’s just sitting there’
If a yard becomes too overgrown or snow and ice create a safety issue, the city can step in and mow or plow. Broken windows often are boarded up.
The bills get sent to the homeowner, but they typically aren’t paid until a new owner emerges at the end of the foreclosure process, Lee said.
Real estate agents field the neighbors’ calls as well. Often, their names on a yard sign are the only connection neighbors have to the process.
“Many times, the house is owned by a large bank or asset management company, and it’s really tough to get a hold of anyone to talk about the property,” said Blair Winn of Winn Realty in Janesville.
Winn, president-elect of the Rock-Green Realtors Association, said some government loan programs have strict rules about a property’s upkeep.
But others don’t, he said, and neighbors shouldn’t hesitate to call the city and ask that their concerns be directed to the lender.
Janis Dye has had her eye on the property next to her Hand in Hand Learning Center on Ruger Avenue for nearly a year.
A “For Sale” sign went up one month and came down the next.
“Now it’s just sitting there,” said Dye, who co-owns the pre-school. “It makes you wonder what’s going on.”
The home is vacant. A couple windows need exterior trim, a garage door is badly dented and the grass is long and leaf-covered. A few of the former occupants’ belongings sit outside.
Foreclosure started Jan. 20. The property was sold at a sheriff’s auction at the end of October for nearly 22 percent below its assessed value. Confirmation of the sale is expected in December.
Dye said that since she doesn’t live at Hand in Hand, her concerns about the property are fewer than they would be if she was a next-door residential neighbor. Parents waiting in line to drop off or pick up kids at Hand in Hand often ask what’s going on with the house next door.
“I’d like to see the yard kept up, and we don’t know what will happen when it starts to snow,” she said. “I’d like to see a family move back in.
“It does kind of make the neighborhood look shabby.”
Property values
Neighbors typically fear that a foreclosed property adversely affects the value of their own property. In some foreclosure cases, the property falls into serious disrepair and is sold well below market price.
But in his 25 years of doing house appraisals, Paul Burkart has never docked one property because of the condition of a neighboring property in foreclosure.
“There are so many variables we consider in appraising value,” said Burkart of Modern Appraisal Services of Janesville. “Some of the things typically associated with a foreclosure—overgrown grass, broken windows—are what we call external depreciation.”
“We typically value on similar sales, and a distressed sale is not a comparable that we would consider.”
That said, Burkart said the situation could change if a neighborhood is overrun with foreclosure sales of properties that have significantly deteriorated.
Local appraisers, real estate agents, lenders and city officials understand neighbors’ frustration. In fact, they can often share a story about a foreclosure sale in their own neighborhood.
Neighbors often feel inclined to take on the lawn work or plowing. But officials say they shouldn’t because of liability concerns.
“They should definitely contact us before calling the lender or a Realtor,” the city’s Lee said. “Sometimes, there’s something we can do to help. Other times there’s nothing we can do.”
Nov 23, 2009 at 4:58 p.m.
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Is it possible good readers and posters of the many comments, that there are many reasons foreclosures have entered our lives and finally into the media…just as so many other signs/causes/symptoms of recession have emerged. Signs such as: high unemployment; underemployment; cutthroat work environments; homelessness; repossessions; raised taxes; lower revenues;…and on and on.
And the causes of recession: Jobs to Mexico and China; a beat down Dollar; price speculations; cutthroat lending; technologies that provide old services now for free; two perpetual wars; Wall Street looters;…and on and on.
And the symptoms of recession: Physiological depression; anxiety; broken families; suicide; domestic violence; poverty;...and on and on.
If our society could be described as just one person, I would be calling 911. Is there a doctor in the house?
Bob Keith
– humble and obedient citizen -
Nov 23, 2009 at 4:18 p.m.
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Yeah, SwissChick, whoanellie should look into the actual statistics of where foreclosures are happening. It isn't just the downscale neighborhoods, and in some areas, it's almost exclusively middle-class neighborhoods and municipalities that are feeling the effects of the housing crisis.
http://blogs.wsj.com/developments/2009/1...
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I doubt many Janesville foreclosures are the result of price speculation, though, as we never experienced the intensity of the housing boom, remaining affordable ... and now just more affordable. Of course, part of the problem is that people up and down the market and industry were selling consumers on the idea of price speculation and quick returns even for their primary residence (and the home equity boom in turn financed the SUV boom that kept GM humming). But either way, someone buying here should have expected modest price appreciation.
Nov 23, 2009 at 3:28 p.m.
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Its only gonna get worse a lot worse
Nov 23, 2009 at 3:01 p.m.
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I'm glad to know that "upscale neighborhoods" are immune to bancrupties and forclosures. Huh. So I guess only people in "those" neighborhoods can manage their money and not get laid off or be a product of a business closing, etc.
Nov 23, 2009 at 1:53 p.m.
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So, GM shutting down won't affect this city? You haven't even started to see its effects. That empty house will probably be joined by more with for sale signs and they may not sell for awhile. Be thankful you have yours and quit complaining. Get off your butt and get out the mower.
Nov 23, 2009 at 1:18 p.m.
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luvujvl, Janesville does not have landlord licensing or mandatory inspections of rental property. If you know of code violations, however, we do have a nuisance ordinance designed to give the landlord a chance to mitigate problems. Call Neighborhood Services if you have specific concerns.
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As for foreclosed properties, I'm not sure there's any issue of compassion here when the people have walked away from the property. If you're not paying the mortgage or keeping the house, there's no incentive to do maintenance. I don't think blowing some leaves or mowing a lawn are particular concerns but any exterior repairs or tree limb issues need to be handled by professionals.
Nov 23, 2009 at 12:31 p.m.
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That's 'the thing'.
Nov 23, 2009 at 12:30 p.m.
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whoanellie - I don't think that tresspassing on someone elses property is the answer. I certainly do not want your advice either on which neighborhood I should buy a house in.
Nov 23, 2009 at 10:09 a.m.
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Here's the thing: why can't we have compassion for the people who OBVIOUSLY lost their house!!! If you don't like it, go clean it up! If you're so worried about your property values, just remember that if they go down, so do your taxes on your house, that's some comfort in this economy! If you bought your house to live in the rest of your life, you don't have to worry about the value of yours. If you bought the house just so you could sell in a couple years, maybe you should have bought in a more upscale neighborhood. It's the season to be jolly, so mind your own business!!!!
Nov 23, 2009 at 9:12 a.m.
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A foreclosed property in our neighborhood was bought on the courthouse steps by a slumlord - not repaired, not maintained, and rented out after sitting empty and deteriorating for a long time. Are there rules in place to prevent this abuse by slumlords? Do rental properties have to be inspected by the City before they can be rented out? I am not only concerned about neighborhood blight, but also tenant safety.
Nov 23, 2009 at 8:30 a.m.
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Interesting that the core problem in this situation is passed over - foreclosures are up. Instead we are debating the aesthetics of the empty houses. It might be like complaining about how unattractive people get who have contracted any particular hideous disease. Perhaps we should figure out why we have an outbreak of the disease.
Personally, it reminds me of when I was in the Army and our fuel supply ran out. The captain got us all together in front of our stalled vehicles and told us our boots needed shinning.
Even if a house is paid for, it becomes hard to stay in it if the occupants have no job - there is still taxes, utilities, upkeep. Address the source of the disease, not the end results.
Bob Keith
- humble and obedient citizen -
Nov 23, 2009 at 7:32 a.m.
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OMG a dented garage door! Quick call the neighborhood watch! Seriously, it's _a_ whole foreclosed house. Wake me up when there's ten of 'em.
Nov 23, 2009 at 7:06 a.m.
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Trespassing? No Insurance? Waaa waaa
If the place is vacant and you rake the leaves or mow the lawn, who's gonna call the police? And If you can rake or mow without getting hurt..You should probibly just stay in your basement in front of the computer and whine online about the trashy empty house next door..
Nov 22, 2009 at 10:41 p.m.
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Give me a dang house and I WIL care for it and pay. Fortunately, I have a job, it pays little, but I have a job. Unfortunately, it's not as "secure" as I thought.
Will someone just let me borrow the money for something more than what $250 a month gives me!
Nov 22, 2009 at 9:38 p.m.
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Again I said most banks take responsibility and keep up these properties, but not all of them. The bank we work for takes it seriously, since the better the property looks and is maintained, the higher the sale price and, more money that they can recoup from the prior loss.
Nov 22, 2009 at 9:36 p.m.
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FYI actually most of the banks do take care of the properties, but only after they have gained ownership. It is the time period before they take over ownership that most of these properties are left to deteriorate in.
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I know my brother and I do foreclosure clean ups and yard maintenance for a local realtor who gets the listings from a bank.
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LEAGALLY banks have no authority to do anything with the property until it is legally sold on the courthouse steps ( bought back by them) Once that is official then the Banks are able to get people go in, secure the building, clean up/clean out the inside and then do yard maintenance & winterize.
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Any work done before hand could be considered trespassing, and would not be covered under insurance should someone get hurt.
Nov 22, 2009 at 9:23 p.m.
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It doesn't surprise me that (banks) lenders will not maintain their foreclosed property. We pamper the banks(lenders), bail them out, and now we give them a 'free pass' on maintaining their properties - pass the costs on to the next owner.
Nov 22, 2009 at 8:26 p.m.
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I would just like to say.....why complain about something that you can't do anything about. So your neighbors house/yard looks bad for a a year or until someone buys the property. It's temporary. Deal with it and find something more substantial to complain about.
Nov 22, 2009 at 8:25 p.m.
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elderly is one thing, but when you have people who are able and healthy, i refuse to help them. they enjoy living in a pig pen. the only way they clean up anything is when the city contacts them. then its back to the same thing in a month or two.
Nov 22, 2009 at 7:55 p.m.
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BikerJoe, you took the words out of my mouth...
if it bothers everyone that much, by all means, take it upon yourself to step in and help out. It will only serve to beautify your neighborhood, and help your own property values that you worry so much about.
Nov 22, 2009 at 6:58 p.m.
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There is a big difference between helping people who "can't" vs people who "won't."
Nov 22, 2009 at 6:34 p.m.
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I live in a neighborhood with many elderly.. We all get together and pitch in to help them out with home and yard work.. If these neighbors are so concerned, why not rake the leaves when your doing your own? Or Mow the Yard? or trim up the shrubs?.. Why does everything always have to be "Somebody else's problem" to take care of. Janesville, City of whiners........ Maybe it's time to start thinking about somebody besides ourselves for a change.. and be doer's.. JMI..
Let the flaming begin..
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