Why Are Banks Demolishing Foreclosed Homes?

Why Are Banks Demolishing Foreclosed Homes? I have had this topic brought to my attention by a couple people who know that I am a blogger, wondering what I thought of this phenomena. I can only relate to it from a personal perspective.

In Florida, even with an "As Is" short sale transaction, the seller is bound by Florida Law to disclose any known facts that are not readily observable that materially affect the value of a property.

Lenders do not have this obligation. They claim they have no knowledge. This makes no sense to me, since any insurance claim results in a check made out to the owner and the lender. So how can they not know?

Nevertheless, the lenders make a disclaimer that they have "no knowledge" of any defects and make no warranties to the condition of the home. In Florida, a short sale owner is still bound to the duty to disclose any defects. For all of the bad press that short sales receive, this is one advantage over foreclosed homes. This information helps buyers who may otherwise end up buying unrepaired sinkhole homes. Beware of buying For Sale By Owners who do not think they have to disclose this information.

Taking my primary residence of 24 years as an example, I had a flood in 2008 in the upstairs bathroom of my 3 story home. Because of the Insurance Company refusing to give me enough money to fix my home, my home was overtaken by deadly black molds (Stachybotrys, Penicillium, Aspergillus (farmers lung), and Cladosporium.

I received so many calls from prospective buyers, and I could not in good conscience put this home on the market, or allow anyone inside, due to the health hazards that almost killed me and my family.

When my home was finally foreclosed, the listing agent assigned to it called me. When I told him of the hazards, he was so disturbed he said he did not want to enter the home. Hopefully as a result, my home will be one of the ones demolished. The Health Department for the State has indicated it will be. It will be a sad day but I do not wish the health issues we endured on anyone.

Things are not always as they appear, and many of these homes ase so toxic they need to be destroyed, at least in Florida.
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