Foreclosures seems to rule the real estate headlines these days, and rightly so. The banks who offered mortgages to anyone with a pulse (and even some WITHOUT!) fostered an anything-goes atmosphere of real estate speculation, which culminated in the miserable situation we now find ourselves in - empty, desolate homes dot our landscape, falling more into disrepair every day. If you're unlucky enough to have one of these abandoned foreclosures in close proximity to your home, you need to understand that the immediate future can change the valuation of your home for years to come. I offer this example:

Your neighbors move out overnight, leaving a seemingly nice home empty. Day after day, you drive by the home, watching the lawn wither, the weeds grow, and imagining the dank, humid air inside the non-ventilated home. But you continue driving, hoping the bank sells it soon. The reality is that it takes the bank 12 - 18 months to take ownership of the property. When they do, the home looks so bad that it fetches only 75% of what a normally maintained home in your neighborhood would get. To make matters worse, the new owner (investor) wants to rent it immediately for positive cash flow and the new tenants are less than desirable. The home's condition continues to spiral and before you know it, the neighbors start moving out. You can see where this leads....but there's hope IF you decide it's worth your time!

After the home has been abandoned, don't wait. Time is NOT on your side. Get together with your neighbors (like you've been saying you always wanted to do) and devise a schedule to keep the lawn mowed, the weeds pulled, the shrubs trimmed, and even the pool somewhat clean (which will be hard if there is no electric). Plan on sharing maintenance on the property for at least a year or more! However, with 4 - 8 immediate neighbors, it's easy to share the duties. Here are some of the benefits of maintaining a foreclosure property:

1. You will bond with your neighbors. Even if you meet every 2nd saturday to give the property a crewcut, you will get to know your neighbors in a way you probably never imagined. You'll find them just as concerned and just as ready to pitch in as you.
2. The foreclosure home will always be presentable. This is important for your home's value, the prospective buyers of the foreclosure, and even an EXCELLENT way to deter crime and vandalism, which is common with foreclosed homes.
3. You won't have to worry about rodents and other critters. A lawn that has not been mowed in months is a havens for rats, snakes (sometimes poisonous), and other animals, some which may prey on your pets. Keeping the foreclosure house's yard "beat Back" ensures this will not be a problem for you or your neighbors.
4. Keep chemicals in the pool. This may cost you some money (maybe $20 monthly) but the effects will be great. A pool left unchecked will turn black in a week and become a breeding ground for mosquitoes and other pests. These bugs will invariably drift around neighboring properties, increasing chances of transmitting diseases such as malaria (unlikely), West Nile virus, encephalitus, and other not-so-nice ailments.
5. You will keep your home's value up! Previous studies have indicated that for every foreclosure within 1/4 mile from your home, your property value will decline 1%. Now this was before the foreclosure flood, but it's not entirely unrealistic. While your property value may decrease because of the FORECLOSURE itself, I believe a well-maintained foreclosure home will almost always sell for more money than a foreclosure home in complete disrepair, which will affect you LESS!
6. Call your county code enformcement. They may not be able to do anything right away AND they are somewhat overwhelmed right now, but the county is an excellent means to ensure the property is somewhat maintained. The county can dispatch lawn maint crews to spruce up the home and then tack it onto a lien which must be paid BEFORE the home is sold. However, I would not depend on the county.

Ok, now there are some issues to consider before forming your neighborhood QRF (quick reation to foreclosure) force. First, ensure the property is actually abandoned. Piles of mail, old newspaper, and a vacant home are good indicators. Also, there is some liability with going on a property you don't own to perform maintenance, so you should seek county or legal guidance. If you get hurt, you will most likely have little recourse so don't undertake this without proper risk assessment. Also, do NOT break into the home...do what you can to secure it (boards over windows, lock doors, etc).

Extraordinary times call for extraordinary measures and the only one who can change the bleak foreclosure landscape in your neighborhood is YOU!.