Lender Unwilling To Foreclose Offers To Cancel Delinquent Home Mortgage To Dodge Prosecution In Upstate NY Building Code Case

In Lockport, New York, the Lockport Union-Sun & Journal reports:

• [I]n another ongoing case, an attorney for M&T Bank said the bank is willing to forgive its mortgage on 34 Pound St., in order to avoid prosecution on seven code charges there. Attorney Thomas Frederick said the bank is still owed $34,000 by David and Andrea Woods, the former occupants, but it willing [sic] to wipe out the mortgage and let the house be transferred to anyone who’s willing to make needed repairs on the roof and exterior.

• M&T started foreclosure proceedings against the Woodses but never completed them, [prosecutor Matt] Brooks said, meaning the property remains in the Woodses’ name. They only found that out recently, although they were evicted from the premises by the bank in 2007. The city went after M&T in light of the eviction, which Brooks said is akin to asserting ownership interest in the property.

For the story, see Housing Court orders ‘hazardous’ garage closed off.

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