Clamping Down on Brown Lawns

It's easy to tell a foreclosed property in Temecula--at least in the developments. Brown lawns. Beautiful streets with well maintained properties are broken up by the obvious REO.

In Whine Country, the houses that I know to be foreclosures seem to be well taken care of. Maybe because the banks know that these are much larger assets. The one that I've highlighted here twice has it's sprinklers on every time I pass by (you can even see in the picture that the sprinklers have just run). Maybe they're broken, but the grass sure looks great!

Now, the city council wants to do something about those deadbeat lenders who allow the homes to slide into disrepair. Or maybe it's the previous owners who played jingle mail with their keys and just left. It doesn't matter because it uglies up the neighborhoods.

Yes, brown grass is a sign that no one is there. But so are the foreclosure notices taped to the windows. Heck, if I see a "For Sale" sign now, I just assume it's vacant. After all, who would voluntarily sell their property right now? If your house is on the market, I think I can safely predict that you're either out or on your way.

Some may feel that this is their opportunity to buy the house of their dreams. In order to do this, they have to sell the house of not their dreams. They certainly don't want to be mistaken for people who default on their loans. But, if you are buying and selling right now, isn't it the same in a low market as in a high market? Paying more, but getting more. When things are smoking, though, you sell your house in a day instead of a year. So, if you are also selling, isn't it better to wait to buy in a less sluggish market than to do it when the prices are low? Therefore, I think I can safely assume that the majority of properties for sale are distressed properties.

Under this proposed Temecula law, owners of foreclosed homes would have to register with the city and hire someone to oversee their properties. With that extra expense on banks, maybe they'll be willing to negotiate more in order to unload the asset. Maybe that'll more quickly decrease the inventory out here. Maybe prices will start to level off sooner than expected. Maybe the appreciation will begin again before we know it. Maybe I have a chance of making back some of the money we lost.

Maybe I'm just dreaming.