Homes in limbo thanks to the banks

PORT RICHEY - The weeds grow tall in front of dingy, neglected homes in a Port Richey neighborhood. There’s nothing of value inside them, just junk.

Nearly ten percent of the homes in Driftwood Village, a deed restriction community, are in this condition, and property manager Josie Betancourt is appalled.

“What a waste,” she told investigative reporter Doug Smith while taking him on a tour of the subdivision. “There are so many people that could use a home and this is one they could really fix up.”

Betancourt is talking about houses that were abandoned by their owners. They fell behind in their mortgage payments and rather than fight foreclosure, they walked away. They were trying to leave their problems behind, but created new problems that not even the banks want to face.

Those banks started the foreclosure process, but won’t take over the property, leaving it in limbo.

“We have a home that's livable,” said Betancourt, pointing at an empty home. “And nobody can buy it or get it because the bank is just holding on to it.”

She notes that the homes have become eyesores, and are driving down property values for everyone.

“I'm not walking away,” said Robert Lichter, who is angry. He bought his home 20 years ago. Now he’d like to sell, but can’t get a decent price.

Lichter blames the banks, especially the ones that got billions through the Troubled Assets Relief Program, or TARP.

“They're saying we're going to spend this money in the community, but it's a lie,” Lichter says.

“The best use for TARP funds would be to go ahead and keep these houses up and see that they're brought into compliance, they're not in default,” said Charles Gallagher, an attorney who helps homeowners avoid foreclosure. But he admits there’s nothing in the law to force banks to take possession of abandoned homes more quickly.

“There are cases were I can see the houses being in limbo for a year, a year and a half,” Gallagher said.

Two bills are moving through the state legislature that would speed up the foreclosure process and limit the time properties remain in limbo.

While banks would be forced to put them on the market more quickly, opponents say the plan would hurt struggling homeowners who need more time to try to save their homes.

In Driftwood Village, the weeds and the junk are just part of the problem. Some abandoned homes that were left wide open have been vandalized.

The homeowners association had to board up one house after teenagers used it to throw wild parties. When Robert Lichter looks at how his neighborhood has changed in just the past year, it's nothing less than heartbreaking for him.

“These kids do damage and vandalize inside the home. Now a $100,000 home is worth virtually nothing,” he laments.

The neighbors are underwater on Water Oak Drive, and banks don't seem ready to throw a lifeline.