Re: RESPONSIBILTY UPON HOME BEING CONDEMNED
Posted by steele in minnesota on December 28, 2008 at 06:51:03:
In Reply to: Re: RESPONSIBILTY UPON HOME BEING CONDEMNED
Posted by FP on December 27, 2008 at 07:48:51:
Deed in Lieu is the least used option given by lenders. And frankly, they don't do anything gladly when it comes to the foreclosure process:>)
If a property is condemned, it happened after the loan was given. The bank would not loan on a condemned property. If now abandoned by the owner, you can pretty well figure that the bank will come after this person if allowed to by state statute.
Besides, the chances of being able to repair the property and still make enough money to take care of the mortgage and other costs are about zero. Recent figures by the Mortgage Bankers Association show that a loss of over $58,000 is typical in a foreclosure.
And that is with houses that haven't been condemned...
One can try a Deed in Lieu as one of the options, but don't hold your breath. Especially on a condemned property. My opinion and experience, of course.
Steele
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