US Bank Foreclosures Morph Into Slums

US Bank foreclosures resulted in a lot of negative publicity lately due to homeowners complaining about their neighborhood practically turning into slums. This resulted from the bursting of the real estate bubble but there are a lot of dirty tactics that their real estate agents and lawyers are alleged of. Whether there is substance in all these allegations or not, some homeowners are successfully fighting foreclosures using the mess that their lenders are in especially the US banks.

Reasons Behind the Slumlord Label

The labeling stems from the banks’ inability to contain properties that they have foreclosed. As foreclosed homes numbered by the thousands, it’s just impossible for the lenders to maintain them and most of them end up in disrepair thus, turning the neighborhood into slums. While homeowners’ inability to pay their mortgage is the primary cause of massive foreclosure, lenders are not totally faultless. Here are the reasons behind the slumlord label:

1. Forcing homeowners into foreclosure

Most lenders will not even bother to workout a solution with the homeowners whenever they get in default of their payments. There are times when homeowners are lured into not paying their mortgages while their modification is being considered only to get foreclosed as a result.

2. Inability to sell foreclosed homes

It’s a reality that it’s just difficult to dispose of homes that are already foreclosed. As the homes stay unoccupied for extended periods, they become a haven for squatters and gang members resulting in fast degradation and lowering of market value.

3. Leaving foreclosed properties unmaintained

Aside from their inability to sell foreclosed homes, the US Bank is also unable to maintain them and as the days drag on, houses begin to degrade. This does not only affect the foreclosed homes; entire neighborhoods are also complaining because the value of their homes are also affected making it impossible to sell them.

Fighting US Bank foreclosures

Due to the lender’s neglect, foreclosed homes become a beacon for criminal activities by squatters. The responsibility of dealing with these problems is passed down to the taxpayers as the cities used their revenues to increase police presence in affected areas. As city attorneys fight to urge lenders to take responsibilities, some homeowners have used the negative effects of US Bank foreclosures and the slumlord labels that followed to their own advantage. With the help of their lawyers, some have successfully stayed in their homes citing the negative effects of foreclosure to the economy and the local communities.

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