After reading the comments on a great post by Sandy Nelson entitled,
banks-should-reconsider-winterizing-their-inventory-of-homes. I felt compelled to write a post on the “rest of the story”! As part of the last bailout of the American banking system disguised as an Americans’ bailout, all the loans that were given by the banks were guaranteed by the government. The “Government” aka me and you!! We guaranteed the banks that all the folks they gave loans to, a long as the banks followed the rules, would be paid in full, if the people ever were foreclosed upon. So, if the banks are guaranteed their money, why would they care when it resells, why would they care if they resell? It is almost humorous that Realtors expect that the banks should pay for the heat to be left on and the home to be Winterized! To the banks, there is no benefit. There is plenty of benefit to the Americans’ footing the bill for the eventual shortfall between the selling price and how much the bank is actually owed, but this is America, where Americans come after big business. How can individuals become too big too fail?
I have been in the preservation industry for over 18yrs. I do believe a property should be winterized if the heat is not left on. For the minimal cost of a winterization in comparison to the cost of damage repair & home value, it is a small price to pay! I have seen houses that weren’t winterized & had extensive damage, which does have an effect on the monies the bank recoups upon the sale of the property. Here is another thought regarding this issue. If a property is vacant & not checked on a regular basis, who is to know if the utilities either get shutoff or had a service interruption? If for some reason the utilities aren’t restored there is a potential for a frozen water system. Which could also lead to possible busted pipes & other costly repairs. Which again will effect the monies the bank can recoup upon the sale! I would positively suggest winterizing all empty properties!
Gene, First, thanks a ton for commenting, its very much appreciated. The issue is that it DOES NOT effect the amount of money the banks are getting as ANY SHORTFALL is guaranteed by the Federal Government, AKA, me and you! There is no incentive AT ALL for them to care about the house they are playing with a Rigged deck, they are guaranteed through “the program” that all loans made would be guaranteed to be paid in full. Now, Barney Frank Rubble went back to Bedrock and our economy is chasing him back to the stone age.
How do we know if the property has been winterized or not?
I did look at a house that I was told that the elec. was on and the sump pump was working but on checking further we
found mold in the finished basement This was before the cold weather came in and it was rainy season. How do we cover
ourselves in this case of winterizing?
Jean
Jean, rely on your realtor, that’s what they are there for. They take classes, they are on top of all the new laws and legislation, and most are willing to give away their time for free. Use them.