A plan to bring down lingering foreclosures

Jim Robins, Las Vegas

Friday, April 8, 2011 | 2:02 a.m.

Like many residents of Las Vegas, I live near a foreclosed house that’s been vacant for almost two years. The backyard pool and spa are not only an eyesore, but a health and safety hazard as well. Combined with the dead landscaping, the home is not only a blight on an otherwise beautiful neighborhood, but also the cause of continued price declines for the occupied homes.

The mortgage holder is in no hurry to sell (which, according to a real estate agent friend of mine, is common throughout the valley), as the holder has turned down many offers higher than those accepted by other mortgage holders for that same model house in our community.

Let’s motivate mortgage holders and others to sell these vacant, foreclosed homes by imposing a fine for every day, week or month they remain vacant — and make it substantial, say $1,000/week, $10,000/month, or more, to get their attention. The positive results will be numerous. For example:

• With vacant homes off the market, supply is decreased, demand increased, and the value of existing homes will escalate, getting us out of a continuing price-decline spiral.

• With existing homes going up in price, new homes will again become viable, and the worst new-home market in years will be a thing of the past.

• The buyers of both vacant and new homes will spend money on furnishings, appliances, painting, landscaping, etc., which will stimulate hiring and put the devastated construction industry back on its feet.

• Perhaps the most important point: The fines would go a long way to help our struggling economy and help solve the current budget deficit problem.