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Walk away foreclosure

JMORRISON

Silver Member
Joined
Oct 22, 2009
Messages
136
Location
East Wenatchee, Wa
Small city and we currently have (8) vacant semi-trashed, weeds in yard houses. Owners have walked away in the middle of the foreclosure process. Legally; the vacant owner is still responsible for the property until the foreclosure is complete which currently is several months.

Our current plan is to write violation notice and file notice to title so when either bank or new owner takes deed the violation notice will be in place. We do not intend to apply any fines at this time.

Apparently some cities are using this as a revenue stream by writing violation and applying daily fine. Before foreclosure is complete the city files lien against property. (110 days x $500/day).
 
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It all depends on the laws of the State and the city code on what you can and can't do. Get the City Attorney involved on the first one so you don't waste your time and effort on it. What you are talking about is possible and does happen in some places, but there are catches. You can also compound your problems if these properties are really upside down, what's owed -vs- what they can get out of them, by piling on the fines. If you never collect the fines and they keep a property in limbo, you have added to the problem.
 
We use a process we call "force cleaning" we do not fine the owner but we clean the property and cut the grass etc. and attach the cost to the tax bill as a lien it seems to work well.
 
Once you start attaching too many liens on a property no one can afford to buy it and fix it up. The last thing in the world you want to be is the primary lien holder on a property.
 
I by the way worked for a City who became the primary lien holder on the property (because of Code enforcement fines)... the mortgage holder foreclosed the property.. the City got to buy the property (because they were the primary lien holder)..

The moral of the story.. don't go nuts in penalties.. the mortgage holder will do a title search - once you hold a greater stake in the property. .they'll foreclose.. and you now own the property.

Nothing prevents the secondary lien holder from foreclosing.. they usually don't.. but they can
 
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