Rampant Looting of REO Properties for Sale

Reports of looting of REO properties for sale have been increasing across Illinois as more and more homeowners are finding themselves homeless because of foreclosures. And the looting is mostly done by desperate homeowners who vent their anger and frustration on banks and lenders on their foreclosed homes.

The rampant looting of REO properties for sale is causing anxiety to other residents in the neighborhood. This is because they could see what is going on but they could not do anything to stop the crime because they know it is being done by previous owners of the property.

In Naperville, some residents expressed their disgust and outrage over previous owners’ looting of amenities on their foreclosed homes.

Some homeowners could be seen removing materials such as trims, moldings, air conditioning, kitchen cabinets, banisters or windows from their foreclosed homes. Most of them argued that they would use the materials on their new homes and they would replace it later.

According to Re/Max Action broker associate Jeff Stainer, he had many REO properties for sale that have been stripped and gutted by previous owners. And the looting does not only occur on low-priced houses but also on homes priced at $500,000, Stainer said.

And it is not only previous owners who are doing the looting and pillaging. Sometimes, unscrupulous contractors, people and builders who learned about the locations of foreclosed houses would steal lighting fixtures, doors, cabinets and anything they could find useful.

According to real estate and financial experts, filing a civil litigation against former owners to recover losses brought about by damaged materials and other goods in foreclosed properties is not cost-effective for lenders and banks.

And banks and lenders know this that is why they sold the property on the market on as-is condition and just deduct the amount that the homeowner will spend on doing repairs and improvements on the sale price of REO properties for sale.

Meanwhile, inspection service firm Brickkicker president Ron Ewald said that his inspectors have seen foreclosed homes with no toilets and sinks and light fixtures ripped out. He added that some previous owners sabotage their properties by doing such things as shutting off water and natural gas valves and loosening fittings under sinks and toilets.

Experts advise potential buyers of REO properties for sale to have the home inspected before closing a deal to eliminate any surprises.

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