Buyers' Revenge: Trash the House After Foreclosure

Wall Street Journal (03/28/08) P. A1; Phillips, Michael M.
With the foreclosure crisis worsening, bankers and mortgage firms often find that angry and depressed homeowners have stripped out appliances, punched holes in walls and wreaked other havoc on their property before vacating if. A recent Campbell Communications survey of realtors finds that that roughly 50 percent of foreclosed properties to be sold by mortgage companies nationwide have "substantial" damage. Agents and lenders say the best way to ensure such homes are returned in decent shape is to pay homeowners hundreds or even thousands of dollars to leave without incident. In the industry, this is known as the "cash for keys approach," but there is no official data on how often this practice is being employed.