Who is responsible for foreclosed property?

[rew tracy]

I was wondering if anyone (the bank, the lender...) is responsible for maintaining a foreclosed property? I know that many foreclosures are neglected, which creates an eyesore for the neighborhood, but is it anyone's job to take care of a foreclosed home? If not, does that mean that if/when a buyer comes along, that they must deal with the aftermath of neglect?

Any input would be appreciated ^_^

[jessiesc]

It's a buyer beware situation (get a home inspection).

Once a property is foreclosed on (often long before this occurs as it is a tell tale sign of eminent problems when a property is in disrepair) , there are no more responsible parties to maintain it.

[Homesurfer]

Yeah. I've seen people take a chainsaw to doorframes and remove all cabinets, appliances, fixtures, and then take a crap in the corner. What happens to the property BEFORE it reverts back to the loan servicer at an unsuccessful auction cannot be controlled. Yes, there are usually inspections once a month, but there isn't much enforcement capability.

So once the property reverts to the lender's REO department -- maybe they fix it up, maybe they sell it as is. Like Jessie said, it's "Caveat Emptor."

[Steve Didier]

They can be bad, no doubt. That's one of the reasons you can get them cheap. First and foremost have the property inspected by a good, licensed home inspector. If there does not seem to be any issues other than cosmetic and the buyer feels OK with going forward with the purchase then make sure that they purchase a good home warranty.

[escapeso]

I think technically the bank is responsible for the property since they own it. So if a neighborhood wanted to find who was responsible for a house becoming an eyesore its basically the bank. But I doubt the bank is going to do much. If the house is becoming a danger for the children in the area you can probably contact the city govt. At least in Austin they are pretty swift about enforcing rules about properties not becoming an accident waiting to happen.

[rew tracy]

Thanks for the information everyone! It's exactly what I was looking for.

Cheers!