Fresno foreclosure - no need to pay tax, insurance, or maintenance !

[debee]

We're surrendering Fresno properties in our bk and today we found out that we don't have to pay the taxes, or insurance or for any property maintenance, lawn care, etc.

As soon as the lienholder files a notice of default with the county (first step in process out here) they become the responsible party in terms of the yard and vandalism.

To any others in this situation in this location, there is information available at the city website.

(Your lawyer can confirm the issues with taxes and insurance because there is a little variation depending on your circumstance. We have a recourse property and a non-recourse property with no back taxes owing, and both will be surrendered in bk.)

[debee]

My bad - the ordinance in Fresno require the lien-holder/trustee to register once the NOD is filed, but the owner is still financially responsible for maintaining the yard, keeping out trash, mowing the lawn, etc.

*sigh*

[Robinrader]

Can you please tell me under what section of the City of Fresno website this information can be found. I am in Chapter 13 presently and am most likely going to be forclosed upon at some point.

Thank You

[tobee43]

We're surrendering Fresno properties in our bk and today we found out that we don't have to pay the taxes, or insurance or for any property maintenance, lawn care, etc.

As soon as the lienholder files a notice of default with the county (first step in process out here) they become the responsible party in terms of the yard and vandalism.

To any others in this situation in this location, there is information available at the city website.

(Your lawyer can confirm the issues with taxes and insurance because there is a little variation depending on your circumstance. We have a recourse property and a non-recourse property with no back taxes owing, and both will be surrendered in bk.)

deb........HOW COULD I HAVE MISSED THIS!!!!!!!!!!!

LOL!!!!!!

cool!!! so no worries ...i'm so glad for you!!

[SPalin]

Here is what the City of Fresno website states regarding foreclosed homes and yard maintenance:
"Vacant Foreclosed Property Ordinance
FMC Code Section 10-620 requires the registration of foreclosed properties in the City of Fresno that have come within ownership or control of a trustee or beneficiary as a result of the default of the borrower and/or the foreclosure process. The foreclosed property ordinance establishes a vacant foreclosed property registration program as a mechanism to protect neighborhoods from becoming blighted through the lack of adequate maintenance and security of vacant foreclosed properties."

So until the ownership changes back to the Bank or trustee, it is your responsibility to maintain the yard. The taxes are fixed to the individual property, so if your behind the New owner will be responsible for the back property taxes. I would maintain your insurance too, until the Bank or trustee takes the property back, as if anyone is injured on the property you can be liable for damages.

[debee]

so no worries ...i'm so glad for you!!

That was my first post Tobee. I jumped the gun. My second post had the problem land back in our laps again. One lawyer I spoke to had told us we didn't need insurance, but he meant that we didn't need to insure for property damage. We still need/should have personal liability. Yes, you and I might have to ask Laz to create a "parking lot" sub-forum so we can go out there and get fisty cuffs on this issue.

Here's the link to Fresno's FAQ on the foreclosure ordinance, Robin:

http://www.fresno.gov/Government/DepartmentDirectory/PlanningandDevelopment/CodeEnforcement/Vacant+Foreclosed+Property+Ordinance+Overview+FAQ.htm

One question about the yard issues in Fresno is what they do about unpaid fines. I know some cities don't pursue collection at all. They put a lien on the property (so it becomes bank's problem). If Fresno is not pursuing, then it might be a non-issue. We just need someone to volunteer as the 'test case'.


edit: robin, if you stay in the house as long as possible, until the auction or such time as determined by a cash-for-keys deal if you get one, you'd be free to walk away without having to worry about the yard.

[SPalin]

With Fresno's budget issues, they will be placing liens on foreclosed properties (didn't happen to me, I kept the yard up, but two others I'm aware of have city liens due to lack of yard maintenance). If the Bank/Trustee doesn't register the home in their name (within 10 days) and it is still in your name, your liable for the yard maintenance.

[debee]

With Fresno's budget issues, they will be placing liens on foreclosed properties

Good to know, Palin. Thanks. I just noticed your tag line. What was your strategy for rebuilding credit? Your numbers look good.

[tobee43]

might have to ask Laz to create a "parking lot" sub-forum so we can go out there and get fisty cuffs on this issue.

LOL!!!!!!!!!! i think that would be the BEST!!! what are we to do with such conflicting answers!!!

especially in light of everything you say makes so much and too much sense....such confusion about this issue!!

SP now confirms some liens are being issued and that's sort of good news?? right ???? LOL!!!!!

ahhhhhh my property most likely at this point has so many liens and problems that no one will ever want it!

cool also about your fico scores SP....ours right after were 695 and 685....but we paid our credit cards up until we filed so they had no chance to report us late!

[Robinrader]

Thank you so much for your help.

[SPalin]

Good to know, Palin. Thanks. I just noticed your tag line. What was your strategy for rebuilding credit? Your numbers look good.

Thanks, Well having a student loan that was never late gave me a leg up, also had a Nordies and Bloomies that survived the bk, so that gave me some age. Opened a Best Buy MC ($300) and CreditOne ($300, now $400) just after discharge. CreditOne increased my CL by $100 @ 5 months. Bought a used car at 4 months ($25,000, 12% @ 60 months, $500 down, 692 fico) as I wanted to get it before moving out of foreclosing house and didn't want a fresh address on my credit report. Applied and got a Hooters MC, 2 months ago w/no af, 16%, and $500 cl. It helps having 100% on-time payments showing on cr and not maxing out the cl on the cards, currently have 49% utility usage, but paying down to 0 in the next 2 months so there should be another 10 point gain or more. That will put me over 700 at one year post discharge! Whoever said bk is bad for your credit score for years is a big fat liar!