The Legend of Foreclosure Vandalism Grows

The Wall Street Journal is reporting that more and more homeowners forced out of their homes by foreclosure are turning to vandalism to lash out in some tangible way in a situation where they feel powerless. Las Vegas is used as a backdrop for the story, not surprising given that the foreclosure rate in Las Vegas consistently ranks among the top 10 metro foreclosure rates, according to RealtyTrac.

The article claims that "real estate agents estimate that about half of foreclosed properties to be sold by mortgage companies nationwide have 'substantial' damage, according to a new survey by Campbell Communications, a marketing and research firm based in Washington, D.C." And there are some real horror stories described by agents cited in the article: ferret droppings along the baseboards, walls pocked with holes, appliances and light fixtures ripped out, a trail of motor oil dripped on all the carpets throughout a house.

But it seems there is a certain urban-legend element to these stories as well. One agent quoted in the video that accompanies the article says that he's even heard of homeowners pouring cement down the toilet. That seems to be the most common story used when people talk about foreclosure vandalism, although I've yet to hear one concrete (pun intended) example of this happening in real life. But even if it isn't true, the lesson taught by these types of urban legends is still very important for foreclosure buyers and investors: when you buy a foreclosure property without being able to conduct a full inspection first, make the assumption that the property is substantially vandalized and calculate rehab costs into your offer.

And if you happen to have any cement-pouring stories, or any other horror story of vandalized foreclosure property, please share it here. With apologies to Prison Mike from "The Office," we want to scare rookie foreclosure buyers and investors straight.