Homeowners are Responsible for Maintaining a Property During Foreclosure
When a property goes into foreclosure, homeowners may immediately believe that they have no ownership left in the house and no responsibility for keeping the property in good condition. However, for as long as they are the legal owners of the house, the borrowers must make sure the property is reasonably maintained. Only at the final stage of the foreclosure process will their responsibilities be transferred to a different party.
For as long as the process is going on through the local courts, the original owners of the property will still have legal possession. This makes them responsible for maintaining the property, paying the real estate taxes, and keeping homeowners insurance paid up to date in case of damage or destruction. Since they still own the house, they must keep on top of all of the responsibilities of maintaining the property in good condition.
Of course, it is especially important for homeowners to keep up on the maintenance if they are eventually successful in finding a solution to stop foreclosure. Letting a home fall into disrepair and then saving the home but having to clean up damage afterwards is not a good start to financial recovery. Even if it is just a second home or investment property, homes in foreclosure should be kept in as good of condition as possible.
For homeowners who are unable to avoid losing the property, though, they will no longer be responsible for maintaining it when ownership is transferred through the foreclosure legal process. This typically happens once the sheriff sale has been conducted and the winning bid confirmed by the local court system. At this point, the foreclosure victims will no longer have title to the home, and it will be up to the new owner (usually the bank) to make sure the property is kept up.
Unfortunately, there have been more instances during the current foreclosure crisis of homeowners willfully destroying their homes in anger at the banks. While this is an understandable response to the deception of the mortgage markets and theft of the home through foreclosure, such destruction hurts the community and the homeowners themselves more than the banks. Such homes can not be sold, as the price to rehab them may be too high, and the properties may attract squatters or other crime.
Although homeowners facing foreclosure may not want to deal with an expensive property any longer, it may be the best idea to maintain the house until the bank has finished foreclosing. Also, voluntary damage should be avoided, as it may create even more legal headaches down the road for the borrowers. Maintaining or saving a house may not be the highest priority for owners who just want to move on with their lives, but keeping a home in decent enough shape can prevent having to revisit the emotional experience later on in another court setting.
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