Crafty Americans Are Strip Mining Their Homes Before Foreclosures

A local news service explains how middle America is reacting to home foreclosures: stripping out everything of value in advance. Guess what that does to foreclosure recovery values.

From 9 News of Denver (via Patrick.Net):

The sales offer everything from the kitchen sink to countertops, cabinets, toilets, the hot water heater and the furnace from a home.

Homeowners hold the sales ahead of foreclosure in an attempt to make money before they leave the house.

Some loans require the government to cover the loss when a homeowner defaults on a loan. When homeowners sell appliances and other fixtures in the home, its value decreases. The government covers the gap between what the home is worth and what the bank can sell it for, and that money comes directly from taxpayers.

Often the pre-foreclosure sales are advertised on the Internet classified ad site Craigslist.

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