What is Home Stripping?

Home Stripping is when a Homeowner going through a Foreclosure removes fixtures from the home before or after they lose the home to Foreclosure. This includes (Light Fixtures, Stoves, A/C Units, Bath Fixtures, etc.). These fixtures wind up on places like CraigsList or at garage sales.

What is a Fixture?

A fixture can be classified as anything that is attached to Real Property (Home). If you can’t just pick it up or roll it out it could be considered a permanent fixture. If you need a screwdriver or wrench to remove an item then it is probably a fixture.

Is this Illegal?

It can often be difficult to prove, but it can be considered illegal and you could be prosecuted for it. There have been a handful of arrests in the Valley over the last month and these people are being charged with criminal damage and defrauding a secured creditor, both are Felony offenses.

Who is the Victim?

Not only are the Banks who secured these loans the victims, but so are the neighbors. What Stripping a home does is it devalues the home. Someone has to pay to put the fixtures back into the home, either the bank when they are Marketing these homes or the new buyer. Most likely scenario is the bank will be forced to discount the price of the home so that the new buyer can replace the fixtures. This can have an adverse effect on the values in the whole neighborhood. So your next door neighbor who may need to sell his home within the next 6 months may be forced to sell his home lower because of the devaluation caused by the removal of the fixtures in the neighbors house.

What if I am trying to Short Sale my house before a Foreclosure? And, I remove fixtures?

Officially, unless the Bank or Mortgage Company has taken ownership of the property there is no crime. But, I would contend that your neighbors are still being victimized by the devaluation of removing fixtures. Here is something else to consider – If you are trying to successfully Short Sale your house, don’t you want it to Sell? You can be greatly hurting your chances of Short Selling your house if you remove fixtures. The home still needs to be Marketed and would you rather Buy a home that has no light fixtures or bathroom sink or the one down the street that does?

All information I have written is based on my opinion and experience from my years working as a Real Estate Agent as well as a Wholesale Mortgage Account Executive.

Mike Jones
RAUKOV,LLC
Director of Sales
(480) 747-2835 – direct
Guardian Realty & Investment Group
Realtor