Saturday, July 4, 2009

Foreclosures Pose Problems for Neighborhood

Uninsured foreclosed properties, particularly condominiums, can be risky for property owners in nearby homes.

Vacant houses are vulnerable to vandalism, theft, and accidental fires. If the property has an adjoining wall, the damage can be significant.

Another issue is that insurers can be very reluctant to offer insurance in condominiums or neighborhoods where there are empty buildings.

"Some [condo] buildings have such a stigma from the number of vacant units that insurers will not insure occupied units for fear of increased claim and assessment costs if a loss were to occur," says Robert Friedman, a West Palm Beach, Fla., attorney specializing in property issues.

Source: South Florida Sun Sentinel, Julie Patel (06/12/2009)

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