Abandoned Townhouse in AZ

In our self-managed 11-unit townhouse complex, an owner walked away from their mortgage more than 18 months ago, and the unit has been abandoned since then. The lender has not foreclosed that we are aware of. The Maricopa County Treasurer's site still lists the owner as the one who walked away.

Our HOA President contacted the lender and was referred to a real estate agent who informed her that the unit would be donated to a non-profit. A member who is a real estate agent managed to get inside the unit and observed that everything had been stripped from the unit including flooring and toilets.

Our members are concerned as is our Board, but we are at a loss as to what we can do. We were hoping not to have to spend our meager reserve on lawyer's fees.

Ideas anyone???

I'm not sure what your lawyer could do.

You could foreclose on the unpaid assessments, but the HOA lien takes a backseat to the deed of trust lien. If you were successful in obtaining title you would have to pay off the balance due on the deed of trust. Even if the lender just gave your association the townhouse, it sounds like you would have substantial expenses just to make the unit liveable.

Try looking at the Maricopa County Recorder's site to see if there was a notice of trustee's sale and/or an actual sale. The assessor's records tend to lag a bit behind the recorder's and I usually do not rely on the assessor's site for ownership information. The lender cannot sell or donate the unit if they are not the lawful owner, so my guess is that the lender is now the owner.

Have you looked into filing a zoning complaint based on the lack of habitability? Or maybe building code violations because the unit no longer conforms to the plans?

How does the exterior of the townhouse look? You may be able to force the lender/owner to make the home presentable from outside.

When I was looking for a home in Phoenix last year I found numerous foreclosures where the home had been stripped of virtually everything that could be taken. The worst one was ten-year-old home on a large lot in a nice neighborhood with a clean interior, recently painted walls, and tile floors; all the plumbing fixtures (toilets, too) were gone, as were all the light fixtures, kitchen cabinets, and all the interior doors. I guess that will teach the lender a lesson.

Dorothy,

Not sure if it makes a difference or not, but are you organized as a Condominium, and are the townhomes stand alone or attached.