Prohibitive Repair Costs May Be Cause Of Foreclosing Lenders Avoiding Taking Title To Properties Securing Delinquent Loans

In Akron, Ohio, WKYC-TV Channel 3 reports:

• Neighbors say the Hite Avenue home has set empty for more than six months, another casualty of the foreclosure epidemic that has ripped across Northeast Ohio. After Friday's sheriff's sale, the home will likely sit empty a while longer.

• Wells Fargo, the bank that foreclosed on the South Akron home, failed to show up at the auction to at least match the opening bid on the property. County rules mandate foreclosures be offered at two-thirds of the home's appraised value. The single-family home near Manchester Road is appraised at $60,000, so it was offered at auction for $40,000.

• Wells Fargo wasn't alone. Of the 60 properties offered at Friday's weekly sale, 33 went unclaimed due to banks that failed to show up. Since neither the bank holding the mortgage nor another buyer placed a bid, the properties remain in the name of the homeowner, who accumulates additional property taxes as the property often sits empty. It also means the bank is not taking steps to reclaim and sell the property, leaving vacant homes vacant for a while longer.

Source: Northeast Ohio: Banks fail to claim properties after foreclosing.