Can a Condemned House Be Fixed? Expert Insights Revealed

A few years ago, Action 5 News ran a story on the thousands of blighted homes creating eyesores across the city. Blight is a bit of an umbrella term in this case, covering everything from houses that look run down to houses that are sincerely on the brink of collapse.

If you own one of these properties, you could find yourself facing condemnation. Can a condemned house be fixed? If not, what are your options for getting rid of the property?

We’re here to share property restoration tips as well as steps to take if you can’t beat impending demolition deadlines. Read on to learn everything you need to know about condemned homes in Memphis.

What Is a Condemned House?

Excluding instances of eminent domain, a condemned house is a house that your local government has deemed unlivable. While this can occur for many reasons, these are the top three conditions that lead to residential property condemnation.

Violations of Housing Codes

Housing codes are created by a board of housing experts ranging from architects to engineers. Cities and states then adopt these codes to ensure that both new and existing properties are safe to use. You’ll find housing codes in relation to:

Structures like stairs and roofs
Functional elements such as fire alarms
Utilities such as plumbing and electrical wiring
Overall sanitation

Even one severe housing code violation can lead the city to condemn your home until you meet code standards. However, many of the homes that do get condemned have multiple housing code violations to contend with.

Missing Utilities

As a property owner, you have a few choices when it comes to your utilities. For example, you can convert gas to electric or go solar. However, you don’t have the option to neglect your utilities altogether.

The city will condemn a house if they discover that electricity, water, or sewage is missing. This is true whether you’ve simply stopped paying your bills or if the utility lines no longer work.

Health Hazards

Let’s talk a little bit more about what we mean by overall sanitation. There are many sanitation issues that can threaten your health, including:

Mold
Exposed sewage
Hoarding or extreme levels of garbage
Pest infestations
Toxic chemicals

Whether you live in your own home or you rent it out, you’re required to meet certain levels of sanitation to protect the health of all residents. Failure to do so will result in condemnation.

Is a Condemned House Livable As Is?

When the city deems your home unlivable, what does that mean in practical terms? Condemning a house isn’t a mere suggestion that you clean up the property. It means that you have to move out until addressing the issues in question.

What if you have tenants living in a house the city condemns? The city will require the tenants to move out regardless of the remaining lease term. In fact, tenants could have grounds to sue you if you continue to rent the property after finding out it has been condemned.

In other words, anyone living in a condemned property needs to move out right away.

Do You Still Need to Pay Off a Condemned House?

What if you still owe money on the mortgage for your condemned house? Lender’s rights allow your lender to pursue all payments as scheduled and failing to make payments could result in legal action. Here are a few tips for navigating your remaining payments.

Talking to Your Lender

If you stop paying off your mortgage, your lender could foreclose upon the property. While this may seem like a simple way to get off the hook for the remaining balance, it can do serious damage to your credit score and your ability to get loans in the future.

Talk to your lender about the recent condemnation of your house. While they aren’t obligated to, they may be willing to extend the terms of your repayment period. This can give you more time to come up with the cash you need to pay the remainder.

Filing Insurance Claims

What caused the damage that led the city to condemn your house? If it’s covered damage, like a fire or wind storm, you may be able to file a claim with your insurance to pay off all or part of your mortgage.

This tactic only applies if the damage is recent. If the insurance company finds that you’ve neglected repairs and allowed the property to get worse, they will likely deny your claim.

Selling the Property

Another option is to sell the property. Depending on the value of the land, you may be able to recover enough of the cost to pay off your mortgage.

The easiest way to sell a condemned house is to work with a cash buyer. A quick sale can also prevent the aforementioned foreclosure that can damage your credit.

Can a Condemned House Be Fixed?

Now, to the question of the hour: can a condemned house be fixed? Repairing a condemned property is the only option that would allow you to move back into your home, rather than losing it to a demolition. Here are a few things to know about condemned house rehabilitation.

Beating the Demolition Timeline

Condemnations are managed by the City of Memphis Public Works and each case is unique. In other words, there is no one-size-fits-all answer to the question of how long you have to repair a condemned house.

If you don’t believe that you can meet the deadline issued by the city, you can apply for an extension. To win, you’ll need to establish that the extra time will allow you to fix the remaining issues.

Getting the Proper Permits

The city is the one requiring you to repair or demolish. Do you still need to get permits before you can make major structural repairs and changes?

Depending on the violations in question, the answer is yes. You will need to apply and pay for the necessary permits in addition to the professional work.

House Rehabilitation Tips

Working on condemned houses isn’t exactly like reviving old homes. You don’t have a say in how much work to do or what kind of upgrades to make.

Start with a realistic assessment of how much you can pay. Then, get estimates from reliable contractors. If the estimates far exceed your budget, it’s time to think about selling.

Can You Sell a Condemned House?

Selling a condemned house isn’t easy because you can’t legally sell the house, you can only sell the land. That means you need to find a buyer who is willing to foot the bill for demolishing the house. Let’s take a look at your options.

Investors and Cash Buyers

Your best option is to partner with an investor or a cash buyer that works with investors. These types of buyers have:

A desire to buy land in Memphis
The funds to invest in potential development space
Low stakes in the condition of the property

At We Buy Houses Memphis, we make it easy to sell condemned houses fast. All you need to do is tell us about the property and we’ll give you an offer in as little as 24 hours. You can choose to accept the offer and walk away with cash in a week.

Traditional Buyers

Can you sell a lot with a condemned house on the traditional market? It’s feasible, but it’s not easy. Given that you’re racing the clock, you may not find a buyer in time.

The problem is that mortgage lenders don’t like to give out loans for condemned properties because of the high liabilities and cost of demolition. Plus, your average home buyer isn’t looking to take on the project of tearing down one house and building another from scratch.

Land Buyers

There is a smaller pool of land buyers navigating the traditional market. If you want to appeal to these buyers, you’re going to have to take on the cost of demolishing the property before you list it. According to Angie’s List, the cost to demolish a house ranges from $6,000 to $25,000, which is no small chunk of change.

Before you make the decision to demolish and sell, consider all related factors, such as your remaining home debt and the value of your land. Only proceed if you have evidence that you can recoup the cost of the demolition and pay off your mortgage. Better still, only proceed if you’ll have money leftover to put toward your next home.

Sell Your Condemned House in Memphis Today

You know you own a blighted property and now, the city knows it too. You’ve been issued a notice that they’ve condemned your home and now you want to know, can a condemned house be fixed? While the short answer is yes, we hope this guide has made the it clear that fixing a condemned house isn’t the right path for everyone.

Fortunately, We Buy Houses Memphis offers an alternative solution. We’re the fastest cash buyer in the city, going from an offer to cash in hand in as little as one week. Get started today by telling us more about your home.