Arizona Locksmith News
Friday, January 23, 2009
SHOULD WE TELL?
If you think you’ve heard everything there is to hear about foreclosures, think again. We have a piece of information that directly affects the safety of millions of Americans in millions of neighborhoods. In fact, what you haven’t heard may be a critical factor in rising crime rates, inflated insurance costs, and increased burdens on police departments and other public agencies. So, after carefully considering the pros and cons, the risks versus the reward…we’re gonna tell.We’re going to tell American consumers that mortgage giants Fannie Mae and Freddie Mac have seemingly adopted a policy of rekeying all of the locks on all of their foreclosed properties -- across the entire United States -- to two simple key codes. Freddie Mac uses one code; Fannie Mae uses the other. In other words, the key that opens the property at 123 E. Desert Ave. in Phoenix, AZ, also opens the home at 456 S. Beach Ln., in Miami, FL, as well as the house at 789 N. Winter Dr. in Minneapolis, MN, and tens of thousands of others across the country.
Statistics show that the increase in foreclosures has resulted in an increased rate of theft, vandalism, and even violent crime. The Community Policing Dispatch, a monthly publication of the US Department of Justice, stated in a September 2008 article, “the potential link between foreclosure and violent crime should give us pause, especially when other recent work has documented increases in violent crime in some communities after a decade or more of steady declines.”
Combine these statistics with analyst projections of up to 8 million more US foreclosures by 2011. According to a November 20, 2008, article from the Associated Press, Fannie Mae and Freddie Mac hold approximately 20 percent of delinquent loans. If these numbers are in fact correct, that means 1.6 million homes will be accessible with just two keys. Considering the connection between foreclosures and rising crime rates, these numbers are staggering.
First, since real estate transactions are public information, anyone can readily obtain the addresses of every foreclosed home on or off the market, both locally and nationally. Criminals take this information and make their rounds, stripping foreclosed homes of all salvageable items -- appliances, fixtures, even cabinets and countertops -- which are then sold at a good profit. Yet, it’s the “angry”, evicted homeowner who receives blame for “trashing” the property. Is utilizing the same key for millions of homes really any different than simply giving those items away or leaving the houses unlocked?
Next come the subs that are hired to clean up and prepare Fannie and Freddie properties for sale. They include unlicensed trades people such as handymen, cleaning crews and even the locksmiths who were hired to rekey the locks in the first place, along with electricians, plumbers, HVAC technicians and many more. All of these contractors are given the same key (now duplicated many times over) to access the property and complete their work. And in the case of the unlicensed trades people, any one of them could already be a convicted felon looking to expand his/her repertoire.
Finally, and most importantly, think about the new homeowners who move into a Fannie Mae or Freddie Mac property -- completely unaware that the keys which open tens of thousands of other properties across the United States, and the keys that are in the hands of thousands of subs who’ve worked on any one of those properties, are the same keys that open their new home. And because many new homeowners find themselves strapped by the unexpected expenses that come with buying a home, they will forego changing their locks. As a result, the new homeowners (or their tenants) become prime targets for burglary (probably by the same criminals who already striped the house once) and identity theft.
Although Freddie Mac and Fannie Mae could just as easily have chosen to use a national master key program (providing a much higher level of security for their properties), these two mortgage giants instead have chosen a phenomenally irresponsible system as a super simple way to maintain control of their properties, without regard for the critical public safety issues it creates.
Fannie Mae’s and Freddie Mac’s policy is ultra cheap for their own bottom line, but outrageously expensive for the American public who now become victims of crime and must absorb the costs associated with increased crime rates. Insurance claims have soared, forcing inflated premiums for average policy holders. Police departments must respond to more calls-- a critical challenge considering budgets have been severely cut due to the economic downturn. And all this because two mortgage giants chose simplicity for themselves over safety for the consumers they serve.
President Obama has called for a “new era of responsibility”. With lenders being urged to provide struggling homeowners some real solutions, perhaps Fannie and Freddie should start by looking inward to evaluate those practices that have helped create a crime-ridden environment threatening the safety of communities across the country. For our part, we decided to tell.
Written by Cynthia Kjos
on behalf of Copperstate Lock & Security
Tempe, Arizona
posted by Copperstate Lock @ 2:33 PM
