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New York Rising, the state's Hurricane Sandy recovery agency, sold 140 houses on Long Island at auction after the storm. Many of the houses have been rehabbed and resold, making money for the investors. But others are now back on the market without any repair work done — and offered at a steep markup. That has some neighbors and officials worried.
Newsday has this report (see: "Some fear storm-damaged houses may languish if flipped 'as is'," by Carol Polsky). "Many of those who bought the auction properties through NY Rising's Acquisition Program are renovating, or preparing to do so," the paper reports. "But a handful of auction buyers are going in a different direction. "They either never intended to do the work, or have decided they'd rather not, and have instead put the houses on the market for resale 'as is,' for what they hope will be a quick profit. They are legally entitled to sell."
Neighbors are concerned. Lindenhurst, New York, resident Tim Kelly told the paper, "If a speculator comes in and buys a house for $80,000 we expect him to put in whatever it takes to get it right, as we did." But state officials aren't worried, the paper reports: they know that property title will revert to the state if the homes aren't brought up to code within three or four years.