Lisa Simpson
Jun 22,2009
In: Repo Houses

Atlanta Repo Houses

Atlanta

Since 2007 a foreclosure crisis of jumbo proportions has hit USA and it is not surprising that Atlanta, the most populous city in Georgia State is suffering the same fate. The Atlanta metropolitan region is one of the fastest growing in the country – it being an important business and transport centre. Atlanta is considered a beta world city. Atlanta is located in Fulton County.

The sub-prime crisis meltdown was the immediate cause of the foreclosure crisis. Foreclosure is a process in the legal system by which lenders realize unpaid dues by closing on the property that has been kept as collateral. The houses are put up for auction but if no satisfactory buyers are found these end up as REO’s or real-estate-owned or bank repossessed. The number of Atlanta Repo houses is staggering.

Repo houses are causing worry to the Atlantants for more reasons than one. In the country each state has separate foreclosure laws. In Georgia State both judicial and non-judicial systems are in use. It takes 90 days for the course to run its length. Atlanta Repo houses are not being sold as there are hardly any buyers in the market thanks to the credit freeze. The empty Atlanta Repo houses are creating law and order problems. Also these Atlanta Repo houses have become breeding grounds for mosquitoes, rats and termites. In some of the vacant Atlanta Repo houses there are even snakes in stagnant swimming pools.

The administration is suffering because of Atlanta Repo houses because taxes are not being collected and decrease in sales has led to a fall in revenue. Moreover the vacant Atlanta Repo houses have increased the workload of the law enforcing and fire fighting forces.

Many cities like Atlanta are not willing to wait anymore and have started filing legal suits against the lenders. Most of the city officials feel that the financial entities have been responsible for this foreclosure mess as they indulged in risky lending without any accountability. A legal firm is being hired by Atlanta City to initiate action against the lenders. The targets of attack are mainly those banks that have taken bailout money but not done anything to contain the crisis.

Foreclosures shot up by 42% in Atlanta from 2006 to 2008. The numbers increased from 9,334 in 2006 to 13,292 in 2008.

Washington is initiating many measures to bring back stability to the regions. There are schemes for refinancing and modification. Funds are being released for purchase of foreclosed houses, refurbishing and then reselling them to proper candidates. As yet things have not improved but are continuing apace.