Vacant and Foreclosed Properties

Erik W. Fox

Foreclosed v. Abandoned

• Foreclosed property– There is an actual owner– Responsible for upkeep, maintenance and

assessments – Has assets

• Abandoned– There is an actual owner– Responsible for upkeep, maintenance and

assessments– Assets - ???

Foreclosed Property

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Foreclosure Process

• Missed Payments• Redemption Period• Notice to Owner• Publication• Title Search• Substitute Trustee Appointed• Advertise• Sale

Good News/Bad News

• Banks holding up foreclosures

• Eligible not applying for the reliefs being offered

• Process has slowed down

• Surrender in Bankruptcy– But not transferring title– Owner still liable– Bank not pursuing as they don’t want liabilities

What to do withVacant Properties

• Only what you are permitted – Check your documents

• Self Help?– Charge maintenance back to the owner– Lien the property for the work performed– Liability for damage to property

• Entry into property

• Authority to impose violation charges

Maintenance by Association

• If you have the right to do the work– Will you recoup your expenses?

• Bank owned & vacant– Is there a management company– Signs posted on the property

Maintenance by Association

• Abandoned property– Not bank owned– Still have right to do work– Will you recoup costs

Determining Bank Owned or Abandoned

• Foreclosure sale notices– Advertised in the local papers– Provide time date of sale– Provide the trustee’s name and contact

information

• Substitution of trustee– Filed in the county land records– Provide trustee’s contact information

Other Options

• Don’t have maintenance authority?

• Don’t have violation authority?

• County has some authority to enforce property maintenance standards under the state code.– High grass– Open structures