One in three of all foreclosed homes are so damaged they cannot be financed for sale, says a national mortgage expert. Many will likely be demolished instead, suggesting rising government aid to speed foreclosures will hit some serious roadblocks, CNN reports.
Thomas Popik of Campbell Communications, a Washington-based group that supplies data to private mortgage industry analysts, told the cable network that so-called "distressed properties" are a much bigger slice of the pie than most understand.
"About a third of all of the foreclosed properties nationwide have been so damaged, either by the previous owners or by criminal gangs coming in after the foreclosure, that they no longer qualify for standard mortgage financing," Popik told CNN.
"In many cases, it costs so much to rehabilitate these houses, it's just not cost-effective," Popik said. "And the properties are eventually going to be bulldozed."
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