Some Vacant Foreclosures Worth Less Than The Copper Inside

Reuters reports on the problems copper thieves are inflicting on neighborhoods that have a growing inventory of foreclosed homes. A couple of excerpts:

• [I]n areas hit hardest by foreclosures, such as the Slavic Village neighborhood of Cleveland, Ohio, copper and other metals used in plumbing, heating systems and telephone lines are now more valuable than some homes. "We're in an incredibly unfortunate time where the nonferrous metals commodities market for scrap is at an all-time high. Houses are getting stripped pretty quickly once they go through the foreclosure process," Cleveland city councilor Tony Brancatelli said. "We're seeing houses sold for $100 that are distressed houses that should not be recycled," he said. Some boarded-up homes in his Slavic Village community have "No copper, only PVC" painted on the boards to stop would-be thieves.

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• "The problem is there's almost no security. Does this look like anybody lives here?" [one broker said], gesturing to the boarded-up home with chipped yellow paint and a "notice of foreclosure" letter affixed to its door. "It's like a big billboard saying 'come and take me,'" he added. "It's an epidemic." [...] Jonathan Osman, a broker in Charlotte, North Carolina, said growing numbers of banks are balking at lending to prospective buyers of foreclosed homes that are stripped of copper pipes and other metals, further depressing housing prices. [...] Along with copper, he often sees air conditioners and garbage disposals torn out. "I don't know what the solution is other than for the banks to not put a sign in the window saying the house is vacant," he said, "or maybe keep tenants there."

• At least 15 U.S. states -- from California to New York -- drafted legislation in the past year to deal with the problem, from tighter regulations on scrap metals' traders to tougher penalties for metal theft, local authorities and metals industry officials say.

For more, see Some homes worth less than their copper pipes.

Reportedly, there are homes in in one upstate New York city that sell for as little as $1. See Reuters: Cities grapple with surge in abandoned homes:

• [S]yracuse, New York, began selling vacant homes last year for $1 each to non-profit groups who promise to tear them down or renovate them. Last month, Syracuse Mayor Matthew Driscoll extended the deal to private companies.

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For other recent copper theft stories, see:

• WFTV Channel 9 (Orlando, Florida) Foreclosed Homes Becoming Easy Targets For Thieves (video only),
• The Eagle Tribune (Lawrence , Massachusetts): Officer interrupts suspected copper thieves in Lawrence,
• The Daily Item of Lynn (Saugus, Massachusetts): Saugus man arrested for stealing copper piping, causing flood (Reportedly, the house was in foreclosure and was empty, but the water had not been shut off. Once the suspect allegedly began cutting out the pipes, a flood ensued).
• Daily Tribune (Oak Park, Michigan): Unit targeting copper thieves pays off first day (Oak Park police say suspect found in home with set of pipe cutters).

For other stories on stolen copper, see Copper Thefts I and Copper Thefts II. copper metal theft yak