KC To Explore Shifting Maintenance Responsibility For Abandoned Homes In Legal Limbo To Lenders

An editorial in the The Kansas City Star observes:

• Normally, when real estate isn’t properly maintained local officials hold the owner accountable. But if the owner has halted payments and moved out, finding a responsible party can be difficult — especially if the lending institution is dragging its feet on foreclosure. As a recent Star story reported, that’s happening to a lot of homes in Kansas City, which seem to exist in a legal limbo. Some neighborhoods are suffering as abandoned homes become eyesores.

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• The City Council is examining ways to lessen the problem, including an ordinance that would more clearly move the maintenance responsibility to lenders. The legal issues may prove to be complex, but the council is right to explore this approach. [...] Some lenders reportedly may be holding off on foreclosure to avoid taking additional losses on their books.

For more, see Dealing with the problem of homes in legal limbo (no longer available online).

Go here for other posts on the problems associated with homes in legal limbo; when the foreclosing lender fails to complete foreclosure or fails to record its deed after foreclosure sale. responsibility code violations foreclosure