I have an idea to float on the issue of the number of foreclosed homes in Charles Co. It is something that has been on my mind and my brain was tweaked again when I read an article about Fed Governor Elizabeth Duke on Bloomberg today… http://noir.bloomberg.com/apps/news?pid=20601087&sid=akaWLU8P7c_Q&pos=4
As we all know CC has one of the worst foreclosure records in the state. As these houses are dumped back on the market, prices will fall further. The ridiculous pace of new construction in Waldorf is only going to make the problem worse.
While reducing the number of new permits issued should be given serious consideration, particularly those involving the construction of new subdivisions…dealing with the empty houses is a bigger problem. Left empty, they become a blight on the neighborhood, put pressure on nearby housing prices, and could become a haven for criminal activity.
I suggest that the county consider providing some sort of property tax or income break to the banks that own the foreclosed properties IF they rent them to qualified local residents…the county could even initiate some sort of rent to own program.
This could potentially provide some significant benefits…reduce the supply of existing homes…reduce the downward pressure on home prices…provide the apparently much needed workforce housing…reduce potential for crime…increase the athestic appeal of neighborhoods.
I think it is an excellent idea. In addition, banks hate owning houses so it gives them an additional incentive to get rid of them. I have said repeatedly that we have enough inventories of affordable homes. Let’s improve neighborhoods by getting these homes occupied again.
Well, initially, it should give the banks an incentive to hold onto the property. If a qualified renter can be found, then the bank gets an income stream from the renter…a tax break would increase the value of the income stream and the bank can hold a balance sheet item that may have an increasing value instead of selling that same item at a loss and having to take a charge against its reserves.
If the bank entered into a rent to own agreement, then the bank would likely get a better price as opposed to dumping the property on an already oversupplied market.
Granted, this might be a lot to take on for a county level goverment…but we have to think of inventive/creative ways to kick ourselves out of the economic mess we are in.
This is an idea that I think has a lot of merit. The high rate of foreclosure in the county is creating a strain on our already declining home values and I feel we must address this issue in some manner. There are several HUD programs available that could possibly help like the “Good Neighbor Next Door” or the Teacher Next Door programs. Wells Fargo and Bank America have initiated some programs to help get these properties occupied and off there bad debt ledgers. There could be tax incentives or some form of down payment assistance made available. Let’s fix some of our problems before we create others.
...Banks do not want to be in the property business. Period. Incentive or not, it is not “what they do.” This is why they tend to let property go so cheaply. In the long run, it’s better for them than owning or managing anything.
The second thing that I take issue with is your last comment, Randy. While noble sounding, the “teachers and police officers” drum has been beaten to death. Why do we keep picking on the two or three careers that pay pretty well and have excellent benefits? In fact, they are mostly all union jobs, too. Who started this notion that we (taxpayers) owe something special to public servant jobs? These are all jobs CHOSEN by the employee. I’ll bet teachers and cops make more money than the custodian at the middle school or the mechanic at the PW garage. There are lots of important jobs out there that don’t pay as much as a GS-14 or a doctor. So what? I’m not trying to squash this notion, in fact, I kind of like the idea. Just keepin’ it real.
I suspect trying to help cops and teachers is a great subject line for candidates. After all, who wants to go on record as saying they would be against ANYTHING that is pro-teacher or pro-cop during an election year?
Just trying in what appears to have been a failed attempt to make a sarcastic comment aimed at the current commissioners.
It seems that whenever our elected officials want to go after budget cuts, raising taxes or pushing an unpopular program, they raise the “teachers, Police, Fire Fighters” banner.
I am sorry to have upset you. I will try to make it clear in the future when I apply my overly dry sense of humor or employ sarcasm.
I was driving on Radio Station Rd today…it looks like roads are being put in to build more homes in Agracopia.
Did my eyes deceive me or are more homes going up in a neighborhood that I have heard (but don’t know for sure) is devastated by foreclosures…can anyone verify?
Checking on ReMax.com this morning, there are over 1800 homes for sale in the county in the single family, condo and multi family categories. No doubt, some of these need work as appliances, piles and other things may have been removed or they may need repairs. It appears to me that if there are working people with lower incomes clamoring for housing, we might be able to do something to get them into these homes.
But what we don’t need to do is build more affordable housing. Not in Cliffton, not in Nanjemoy, not anywhere. We have plenty!
Shadowdiver: Lots of home sites are being readied in Agricopia, just down Radio Station Road from those homes that have been abandoned for years. It seems that developers in CC have the “if we built it, they will come” mentality. Foreclosures in Charles County and nationwide were up again in August. Is no one listening? And now the proposal to change the zoning and build 500 more houses on agricultural land just north of Clifton where the developer only got 92 lots to perc?
We need to keep close tabs on development.
