Understanding Vacant & Foreclosed Properties: Legal Rights and Maintenance Responsibilities

1. Vacant and Foreclosed Properties Erik W. Fox

2. 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 - ???

3. Foreclosed Property

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

5. 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

6. 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

7. 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

9. Maintenance by Association • Abandoned property • Not bank owned • Still have right to do work • Will you recoup costs

10. 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

12. 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