Foreclosure and no C/O(Certificate of Occupancy)

[nycdk]

About 3 years ago, I tried to remodel my kitchen. I hired a handyman to do this job. To get a work permit, he asked me to fill out the form and got me the seal from an electrician. After his work was done, I asked the town to inspect his work. The inspector wasn’t satisfied with the work, and talked to the electrician, not the handyman. The electrician denied he sealed the application. What happened is that a friend of the handyman who is the brother of this electrician borrowed the seal and used it for money. This is what I was told when I contacted the electrician for help but he refused to help me. I talked to the town about this and the town said I have to hire a new electrician. But for some reason, I wasn’t able to get this done back then. This year, I was financially in trouble, filed bankruptcy, discharged, and going through foreclosure process against this property. I wonder what I have to do with this property. Am I still responsible for this C/O? Do I need to get it to the lender? I am discharged but still in darkness. Please help!

[despritfreya]

If the property is being foreclosed the issue of the CO will be that of the new owner which will probably be the lender. You have no obligation to obtain the CO.

Des.

[dspii]

Watch out for liens against you, if you did not pay for the sub-standard work....you didn't mention. The actual lien could be against you and if so, there are a couple of extra steps you have to take to have the lien removed, but can be easily done if your in BK.

[despritfreya]

Watch out for liens against you, if you did not pay for the sub-standard work....you didn't mention. The actual lien could be against you and if so, there are a couple of extra steps you have to take to have the lien removed, but can be easily done if your in BK.

Just curious. . .

What type of "personal" liens are you referring to?

Materialman liens attach to the property and, as far as I know, are junior to the mortgage lender. Any personal obligation to pay the contractor was a general unsecured claim in OP's bk.

Thanks for any clarification.

Des.

[nycdk]

Watch out for liens against you, if you did not pay for the sub-standard work....you didn't mention. The actual lien could be against you and if so, there are a couple of extra steps you have to take to have the lien removed, but can be easily done if your in BK.

I don't know about this. I fully paid for the handyman. What I'm asking is about the C.O. and I think this is between the building department and me. For I am thinking about renting the property out until the title is finally transferred, I think I have to get the C.O. This way, I can pay for the condo fees and property taxes until everything gets finalized.

[despritfreya]

I am thinking about renting the property out until the title is finally transferred, I think I have to get the C.O. This way, I can pay for the condo fees and property taxes until everything gets finalized.

I would agree that if you are going to rent the property you should finalize the CO. Remember, if something happens while the renter is in the property and it relates to your failure to obtain a CO then you may have some exposure from the renter for any injury that may result. Better safe than sorry.

Also, you need to be careful about renting on anything other than a month-to-month basis. The renter should be informed that the property will be foreclosed otherwise you may have committed fraud in holding the property out for rent without disclosing its true marketability.

Des.

[frogger]

Also, you need to be careful about renting on anything other than a month-to-month basis. The renter should be informed that the property will be foreclosed otherwise you may have committed fraud in holding the property out for rent without disclosing its true marketability.

Des.

Agreed. In this situation, renting it is probably going to end up bad for everyone involved, including you.

[helpmeout]

For I am thinking about renting the property out until the title is finally transferred, I think I have to get the C.O. This way, I can pay for the condo fees and property taxes until everything gets finalized.

Before renting out property that you are not paying the mortgage on, I would check with an attorney about the legality of that. It may be that you have to give the money from the rent to the bank that holds the mortgage.

[nycdk]

I would agree that if you are going to rent the property you should finalize the CO. Remember, if something happens while the renter is in the property and it relates to your failure to obtain a CO then you may have some exposure from the renter for any injury that may result. Better safe than sorry.

Also, you need to be careful about renting on anything other than a month-to-month basis. The renter should be informed that the property will be foreclosed otherwise you may have committed fraud in holding the property out for rent without disclosing its true marketability.



Des.

Yes, that's why I rent it out with an agent, who discloses the situation of being foreclosed and provides with documents such as <Tenants rights during Foreclosure> published by state government. Still, there are some potential tenants who want to look.

[nycdk]

Before renting out property that you are not paying the mortgage on, I would check with an attorney about the legality of that. It may be that you have to give the money from the rent to the bank that holds the mortgage.

Well, actually my attorney suggested renting the property out so I can pay for condo fee and tax. So, I think there is no legality issue once I finalize my C.O.

The only thing left is how to handle this C.O. because it's been 3+ years since i got the work permit. I think I have to talk to the Building Dept. but not sure how much penalty i need to pay and what could be the best approach to solve this historical problem. Anyone who has good idea, please?