City Left Holding Foreclosed House

by Ben Johnson | June 24, 2009 2:05 PM | | Comments (4)

Mills.jpg155_Poplar2.jpgWhat happens to a long-vacant foreclosed house when city government is the only interested buyer?

Attorney John Mills (pictured) posed this question as he considered the fate of the boarded-up house at 155 Poplar St. that sold to the city for $11,100 Saturday.

“What are they going to do with it?” he asked. “Sell it? Raze it? How do they expect to get their money out of it?”

The house, which had an appraised value of $50,000, came encumbered with $5,506.16 in back taxes and and $8,797.96 in water and sewer bills. Rich Votto, who inspected the property along with business partners Victor Zayas and Bryant Thomas, said the price just seemed too steep.

“It’s too much for over $20,000 — you’d have to put too much into it,” he said.

Pendleton.jpgRidgefield real estate agent Paula Pendleton (pictured, left), who came to the auction with business partner Al Dexter, was initially happy to beat the city’s bid by $1, but retracted her offer when she learned about the taxes.

“I guess I just don’t think it’s a $20,000 or $30,000 house,” she said.

The home’s previous owner, Jayotis Jones, purchased the house for $165,000 in 2005.

Rafael Ramos, a deputy director at New Haven’s Livable City Initiative (LCI), said finding a buyer capable of turning such a property around and making it livable again can be a challenge.

“For a private buyer, it’s difficult to get a mortgage on a house that needs a lot of major repairs,” he said.

In most cases, he said, the city prefers to sell vacant buildings off to nonprofit developers with the means to rehab them as affordable housing for first-time home buyers.

“Unless a building is literally falling down, the chances that it would be demolished are very small,” he said.

The Poplar Street house, he said, came to LCI’s attention after a complaint in September of last year noted that it was “vacant and trashy and open to vandals.”

Flaco.jpgAndre “Flaco” Diaz (pictured), who lives across the street and said he sometimes does rehab work for Votto, said the vacant house has become a source of trouble in the neighborhood, a source of drug-dealing and worse.

“This homeless guy used to sleep in there, and I heard he robbed some drug money, and they either killed him in there or he had an overdose, and they found him in there dead, one of those two,” he said.

Overall, the number of vacant houses in New Haven, which dipped to a low of around 300 during the housing boom, has risen to about 800 in recent months. Including the Poplar Street house, the city itself now owns 14 vacant residential buildings.


Previous Independent coverage of New Haven’s foreclosure crisis:

WPCA Fails To Uproot Family
A New Haven Dream Foreclosed
This Is The Face Of Deutsche Bank
Out-of-Town Bankords Respond To Call
Banks Duck City On Foreclosed Homes
Rescue Squad Hunts For “Tipping Points”
John Wins A Loser
Still A Bargain, Foreclosure Price Zooms
Flippers Get 2nd Shot At Fixer-Upper
Suburban Cop Finds A City Steal
Absentee Banklords Thwart Foreclosure Sales
City Forecloses On 40 Lots
Crowd Seeks Cure For “Mortgage Distress”
Donovan: “Help Is On The Way”
Judge Forces WPCA To Give Mom A Chance
WPCA Uproots Tenants, Too
Home-Rescue Squad Ignores WPCA
Sewer Agency Unloads House
Foreclosure Evictions Halted
Let The Bank Have It, This Time
Hazel St. Sale Reflects Economic Climate
Hill Foreclosure Triggers Memories, & Prayers
Foreclosure Fee-Slashing Judge Leaves Town
She’ll Be Watching Deutsche Bank
A Last Pre-Foreclosure Look At A Lifetime Past
New Yorker Snags Foreclosed-Upon Gem
Foreclosure Dream Goes Sour
Judge Slashes Foreclosure Bounty
Tax Break Saves Woman’s House
Bank Replaces “Gunshot Alley” Landlord
Foreclosure Bill OK’d
Singh Seeks Home For A Song
Foreclosure’s Neighbor Worries More About Speeding
Networking Replaces Foreclosure at Christy’s
Foreclosure Bargain — & Renewal — Jeopardized
Bank Outbids Akbar; Family May Keep Home
“So Don’t Worry About Pablo”
Bankruptcy Postpones Foreclosure
Next-Door Foreclosures, 53 Years Apart
They Met On Foreclosure Way
Little Garage Draws Big Bids
A 2nd Chance on Lewis Street
Foreclosure Attracts New Breed of “Specialist”
In Foreclosures, Judge’s Hands Tied
Home Saved From Foreclosure. Cycle, Too
A House For Precious?
Deutsche Bank Grabs Dixwell Condo
Reluctant Bidder Snags F. Haven Bargain
Well, There’s Always Powerball
Neighbors Retrieve Home From Bank
Somebody Has Plans For Bassett Street
Foreclosed, the Khennavongs Leave the Santanas
Foreclosure Steal May Be Too Good
2nd Foreclosure in 3 Months Dims Bright St.
After Foreclosure, W’ville Owner Still Hopes To Sell
He’s Not Buying, Yet
Quiet Foreclosure on Porter Street
3 Minutes Too Late
Historic Gambardella Property Foreclosed
2 Homes Lost, 1 Gained
“Everybody’s Got To Eat”
More Foreclosures, More Signs
Foreclosure Sale Benefits Archie Moore’s
Rescue Squad Swings Into Action
A Bidder Shows Up
Bank Beats Tanya’s Bid
Westville Auction Draws A Crowd
DeStefano: Foreclosure Plan Ready
Can They Help?
“We Should Over-Regulate These Bastards”
Rosa Hears of Rescues
WPCA Grilled on Foreclosures
WPCA’s Targets Struggle To Dig Out
Sue The Subprimers?
WPCA Hearing Delayed
Megna’s “Blood Boils” at WPCA Tactics
Goldfield Wants WPCA Answers
2 Days, 8 Foreclosure Suits
WPCA Goes On Foreclosure Binge
A Guru Weighs In
WPCA Targets Church
Subprime Mess Targeted
Renters Caught In Foreclosure King’s Fall
She’s One Of 1,150 In The Foreclosure Mill
Foreclosures Threaten Perrotti’s Empire
“I’m Not Going To Lay Down And Let Them Take My House”
Struggling Couple Sues Over “Scam”

To learn about the ROOF Project, a community-wide effort to help New Haveners navigate the foreclosure crisis, click here.

The following links are to various materials and brochures designed to help homeowners avoid foreclosure.

How to prepare a complaint to the Department of Banking; Department of Banking Online Assistance Form; Connecticut Department of Banking, Avoiding Foreclosure; FDIC Consumer News; Statewide Legal Services of Connecticut, Inc; Connecticut Bar Association Lawyer Referral Service.

For lawyer referral services in New Haven, call 562-5750 or visit this website. For the Department of Social Services (DSS) Eviction Foreclosure Prevention Program (EFPP), call 211 to see which community-based organization in the state serves your town.

Click here for information on foreclosure prevention efforts from Empower New Haven.








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Comments

Posted by: anon | June 24, 2009 3:41 PM

$165K to $11K is a pretty sharp drop in value. Everyone loses as a result. Could this have been prevented?

Posted by: Alphonse Credenza | June 24, 2009 4:26 PM

Yes, have the government come in and buy all the foreclosed homes with taxpayer money! That's always the solution!

Posted by: fred johnson | June 24, 2009 5:39 PM

"..In most cases, he said, the city prefers to sell vacant buildings off to nonprofit developers with the means to rehab them as affordable housing for first-time home buyers."

Don't make me laugh..I am still trying to collect architectural and engineering fees from a "non-profit developer" who went belly up and wasted taxpayer dollars on god knows what. Someone need to investigate these "non-profit developers" and how they get cash and deals from the city.

Posted by: Jon Doe | June 24, 2009 10:46 PM

I guess the city money problems are over if they are spending our tax dollars on this.

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