FBI investigates foreclosure stripping in Phoenix

admin — Tue, 22 Sep 2009 15:36:50 +0000

With Arizona foreclosures up by 600% since 2005, realtors are seeing more and more foreclosed homes being stripped right down to the bare walls. It is estimated that 85 to 90 percent of foreclosed houses under $200,000 have been stripped. Homeowners are taking carpet, tile, cabinets, sinks, light fixtures and even door knobs. Many of the items are showing up on Craig’s list and the FBI special mortgage fraud task force is now investigating.

“When you sign the deed to the home, you agree not to devalue the home. Stripping it is devaluing the home and that’s illegal,” states FBI Special agent Julie Falferty.

Not only is foreclosure stripping a felony but stripped homes have to be sold for 30 – 50% less than their full value. Furthermore, buyers can’t get traditional financing, so only buyers who have cash and are willing to spend alot of money to replace fixtures can buy a foreclosed home.

The Maricopa County Attorney’s Office is starting to prosecute those who are involved in foreclosure stripping. If you suspect someone on Craig’s List of selling fixtures from a foreclosed home, or believe your neighbors may be involved in foreclosure stripping, contact the local authorities or the attorney’s office.

Anthony Boydston | Arizona East Valley Real Estate » fbi

FBI investigates foreclosure stripping in Phoenix