Lenders are as responsible as any party for the current real estate conditions we are experiencing in the U.S. But this blog is not about affixing blame to anyone. What it is about is stepping up to the responsibility and accountability for taking care of what lenders now own; a bunch of foreclosed residences in the U.S. A real big issue centers around “Now that you own, it’s your responsibility to take care of it”.

All too often, lender owned homes (called REO’s for real estate owned) are neither kept in proper condition, nor are the yards maintained to keep up with the community standards. Why? Well, they aren’t going to own it that long , are they? That’s a lame excuse and lenders need to be accountable for improper care of REO properties in their care. Afterall, why should the rest of the community suffer further because a lender made a poor investment and had to reclaim the asset. The communities in this country suffer enough through these times when values take a “hit”. If lenders don’t take care of the properties they own, it could have a compounding, negative effect on values.

Some communities are taking action and trying to create sanctions or fines against lenders who don’t comply with standards of maintenance. After all, homeowner associations require it and fine people for non-compliance. I know, I’ve been fined from time-to-time. The point is, everyone else is expected to meet certain standards. In difficult times such as these, values can go lower still if the community looks down-trodden. If people don’t do their fair share of maintaining a community, one house at a time, if will affect overall values and can cause areas to slowly go downhill.

So lenders, you helped create this situation and it’s time you owned up to it (responsibility) and stepped up to doing your share to keep community values from going lower (accountability). There are a lot of great maintenance companies out there who could use some work. Local income would benefit those communities and the work those people do would help maintain values, such as they are. So lender, don’t compound a situation that’s tough already by not stepping up to help solve these problems. Maintain your REO’s properly. Real estate is a local business and local juridictions exercise their influence to ensure lender do their job, start to finish.