Foreclosure Defense Florida

“Property Preservation” of Foreclosed Homes is “Unlicensed Contracting”- Why is The State And Federal Government Conspiring To Destroy Millions of Homes?

Add this to another example of how government at all levels is completely failing in its most basic responsibility….to protect the citizens from harm.

I’ve been screaming about this issue for so long, it’s disturbing that not only has nothing been done…the problem just keeps getting worse.   The problem is millions of homes across this country are being destroyed because work that is being done on those homes, in the name of “property preservation” is being done by individuals that are not licensed to perform the work being done.   Even if the work that is being performed is completed correctly and in compliance with all applicable building codes, work that is performed by individuals that are not licensed and for which permits have not been pulled creates a permanently damaged structure.   Even if the property is sold to a third party, the problem reverts back to the owner that completed the unlicensed work.

Keep this in mind:

” Contracting” means, except as exempted in this part, engaging in business as a contractor and includes, but is not limited to, performance of any of the acts as set forth in subsection (3) which define types of contractors. The attempted sale of contracting services and the negotiation or bid for a contract on these services also constitutes contracting. If the services offered require licensure or agent qualification, the offering, negotiation for a bid, or attempted sale of these services requires the corresponding licensure.


But let’s keep in mind what’s the real point of licensing contractors and building codes…the point is to protect the public from harm.   That’s right, it’s a public safety issue.   That’s why we require licensed electricians to cap wires and perform any work on electrical systems.   That’s why we require licensed plumbers to do plumbing work.   That’s why we require that roofers be licensed to perform roof repairs.

But why does the federal government continue to pay billions of dollars for work on homes owned by GSE’s that is not licensed, not to code and not done pursuant to any permit?

Eventually all this work will all be undone. Eventually all this work will be redone.   It might be when the third party purchaser tries to get a home insurance policy and the insurance inspector recognizes that the roof is not installed to code.   It might be when Goldman Sachs purchases a home, the home is infected with toxic mold and it becomes apparent that the source of the leak was a toilet not installed to code.

Maybe it will be when a child dies after a home burns down because an unlicensed contractor rigged up the electrical system.

As you read the attached Office of Inspector General report, which details the inventory of homes, keep in mind that when you read the word, “contractor” they do not refer to “licensed contractor”.   And so, every time you read a reference to “property preservation” keep in mind this means, “unlicensed contracting”.

My question is, where are all the licensed contractor associations who are being cut out of billions of dollars in work that is being performed by illegal scabs? And where are all the local building inspectors?   It’s this massive, unchecked crime spree….that continues unabated.

The only conclusion a rational person can come to:

This government works to protect, defend and support on-going criminal enterprises.



And now for the report:

The Offices of Inspector General for the U.S. Department of Housing and
Urban Development and the Federal Housing Finance Agency (HUD-OIG
and FHFA-OIG) have produced this report on ” real estate owned” (REO)
properties. REO are residential properties that have been foreclosed upon and
transferred into an REO inventory for management and ultimately disposition.
This report addresses REO properties held by or on behalf of either HUD or
the Government-Sponsored Enterprises (GSEs or enterprises) for which FHFA
serves as conservator””the Federal National Mortgage Association (Fannie
Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
HUD and the GSEs have created infrastructures to manage and sell REO
properties. Though those infrastructures differ somewhat from one another,
they all rely heavily on contractors to perform tasks central to effective
REO management: (1) securing properties to avoid theft, vandalism, and
unauthorized use; (2) maintaining and repairing properties as needed;
(3) pricing properties appropriately through broker price opinions or
appraisals and satisfactory promotional efforts; and (4) selling properties
to homeowners or investors within a reasonable period.
As of September 30, 2012, HUD held 37,445 REO properties while the GSEs
held 158,138. In addition, the ” shadow inventory”””residential loans at least
90 days delinquent””totaled 2,674,682 properties, roughly 7.5 times the size of
the HUD and GSE REO inventories combined. Even a fraction of the shadow
inventory falling into foreclosure could considerably swell HUD and GSE
inventories of REO properties.





  • neidermeyer says:

    Please concentrate on big issues ,, in Florida this isn’t really an issue because you don’t need permits or a contractors license for what they’re doing ,, a simple HANDYMAN license more than covers securing a property (adding or changing locks , closing off water sources , fencing around a pool etc. etc.) … As for trashing out a property where it hasn’t gone through a sale yet .. that’s a huge problem..

  • Mark Grayson says:

    You are absolutely right Matt. There is no one checking on these REO companies to even see if the work was actually done either as most of the work is contracted from out of state.My home in Sarasota was in deplorable condition even though they added thousands of dollars to the summary judgement for upkeep. The outside air conditioning unit was stolen…probably by the REO guys themselves as it was obvious someone had pulled their truck right into the back yard and drove away with it. The yards were overgrown so bad the city of Sarasota had to send their own crew out and put a lein against the property…in my name. The inside was full of bugs, mold, the toilets had plastic bags stuffed down them where someone had used them with no water turned on, empty beer cans were strewn around where someone took a break…disgusting.

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