QUESTION
Can the township sue former owners for maintenance upkeep on a foreclosure?
Asked on May 26th, 2013 on Foreclosures - California
More details to this question:
My parents' home was foreclosed 2 years ago and they gave the keys to the bank. The bank switched the locks and my parents have not had to pay for property taxes since they no longer own it. The original bank recently got bought out by Bank of America but they never switched the title over. Now the township is suing them for upkeep even though they have had nothing to do with property since the foreclosure. Is this allowed? If so, what legal action should they take?
5 ANSWERS
Commercial Attorney serving Columbia, SC
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Gleissner Law Firm, LLC
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From your description, I suspect that the bank never completed the foreclosure process or the deed-in-lieu process. As a result the property is likely still in your parents name. I would recommend that when your parents answer the complaint against them by the township, that they third party in the bank that is presently holding the keys to the property. Even if the title is still in your parents name, they only hold legal title. Equitable title rests with the entity in control of the property and that entity is the bank. So, tell you parents to get an attorney and tell the attorney to go after the bank to get these things straightened out.
Answered on May 29th, 2013 at 10:40 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The law depends on the state where the property is located.
Answered on May 28th, 2013 at 10:35 AM
If a lawsuit has been filed, the obvious action your parents must take is to consult with an attorney to defend them. Even if the township is proceeding illegally, the court will not protect your parents' interests. If they don't respond to the suit, the township will win by default whether it is right or wrong.
Answered on May 27th, 2013 at 10:26 PM
Mark Weinstein
If indeed the bank actually foreclosed on the house and took title to the home then your parents are no longer responsible for any maintenance and should write a letter to the township informing them of the new owner (the bank) and advising the township to take action against the new owner.
Answered on May 27th, 2013 at 9:48 PM
File a lawsuit for declaratory relief.
Answered on May 27th, 2013 at 9:38 PM