Can you sue for loss of property value on your house because a bank won’t keep foreclosed houses in the neighborhood up?

UPDATED: Oct 17, 2011

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Can you sue for loss of property value on your house because a bank won’t keep foreclosed houses in the neighborhood up?

My house’s value went from $150.000 down to $50,00because of foreclosures not being kept up in the housing area. They have personally cause my property value to bottom out.

Asked on October 17, 2011 under Real Estate Law, Georgia


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Good question. Practically speaking you can file a lawsuit against financial institutions because they are not keeping up the conditions of foreclosed properties in your neighborhood based upon a nuisance theory of recovery if the conditions of the property create a dangerous condition for the community at large.

Such a lawsuit would not be for actual damages for the depreciation of your home in general but the end result may force the lending institutions to start taking better care and upkeep of the foreclosed homes resulting in better neighborhood conditions that may increase the value of your home.

You should consult with a real estate attorney on this issue you are writing about.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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