What Is Considered Abandonment in a Foreclosure?
A home being foreclosed on doesn't always look abandoned, but in many cases it has been abandoned. The problem is that homeowners are allowed to not use their homes and not explain to others when they will return to their homes. There are very strict laws about the rights of property owners that remain in effect right up until the day the foreclosure is complete. In the event of foreclosure, the homeowner has stopped making mortgage payments, but certain additional criteria must also be met for the house to be considered abandoned in foreclosure.
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Clear Demonstration
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In America, the laws are clear when it comes to what constitutes the abandonment of property. There must be irrefutable indicators that abandonment has occurred. Examples of abandonment include leaving the home free and unguarded to the point that anybody can access it and use it without the owners knowing. Leaving free access of the house to the public has been supported as abandonment in a court of law. When one goes away for a long weekend, the home is left accessible to the public, in a manner of speaking, but that is not considered abandonment of the home. The access must be consistent, without owner contact or effort to maintain the home, utilities or land.
Foreclosure Process
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Before a home going through foreclosure can be declared abandoned, an inspection must take place. The inspection must be handled by the lender or an appointed representative of the lender within 30 days after the foreclosure is filed. Photographs of the land and building exterior must be included in the inspection. Another inspection of the property must be done at least once every 30 days while the foreclosure process is underway and the house is either sold at auction or is cured of its defaulted mortgage payments.
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Filing Abandonment
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Many cities, including Milwaukee, Wisconsin, require a specific registration of abandoned homes going through foreclosure. Registration is completed through the Neighborhood Services office. A nominal registration fee is required. The registration only needs to take place once, even though inspections must continue every 30 days.
Abandonment Vs. Surrender
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The difference between abandonment and surrender is intent. When a homeowner about to be foreclosed on surrenders the property, he signs documents that he is voluntarily giving the property back to the lender, handing over the keys and walking away. Such paperwork allows the expediting of a title transfer out of the homeowner's name. In the case of abandonment, the property owner often cannot be located and inspections, photos and registration are typically necessary to declare the home abandoned. The lender is allowed to change the locks on the house to keep vandals out, even without locating the homeowner. This is considered protecting the lender's interest, not trespassing or vandalism. If the homeowner returns after the locks are changed, he is legally entitled to gain access to the home until the foreclosure is complete.
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References
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