Banks not taking possesion of homes

I apologize if this has been answered already in another post, but i did a search and didn't see anything.

Our community has 287 town homes. A few have been abandoned by their owner and they are just sitting there collecting dust and falling into disrepair. We have one that was abandoned more than 2 years ago. When I was first elected to the BoD a year ago, calling the bank about this house was one of my first actions. At that time, this house was pretty bad. The lawn was long, front and back. The inside had some damage and kids were entering it to do whatever it is that kids do. The bank informed me that they had not take possession of the property, but would send out field service to fix the issues. They fixed them just enough to get by.

Since then, the roof has partially collapsed from snow, the drywall has major damage and the ceilings and insulation is falling from water damage, etc. I would love to go in, but the field service doesn't go in without tyvek and masks, so there is mold...and probably a lot of it. This house is endangering the two homes on either side because of the damage inside. The bank will not take possession. I dont want to call the health department for fear they will condemn it and that wouldn't make the bank work any faster.

Our HOA is in a tough spot and I'm wondering if any of you have come across this and have had any success in getting your issues fixed.

The bank is owed way more than they will ever get at sheriff sale and the previous owner is in hiding. They are not interested in protecting their investment. I worry that the homeowners on both sides are in danger, a concern that I have relayed to the bank.

How do you light a fire under the bank? Any advice would be appreciated.

i actually just got off the phone with the bank again and after an hour conversation and careful wording, i got it out of her that they have taken possession of it. now they have to follow the rules. i know i am not allowed to go in, thats why i havent.

our HOA is not responsible for lawn care and that was one of the biggest issues, because the residents next door werent allowed to cut it, because of the liability. we were not going to foreclose, because of the reasons you listed.

i wish the banks had to follow the rules, just like the rest of us.

i dont worry about what the bank gets for it, i could care less. i hope they lose their ass on it, which they will. i just want someone to live there. we are a great starter community and a lot of people who would love to have a home of their own can not afford it. hopefully they will get their opportunity when the banks start selling for pennies on the dollar to get the homes off of their loss books.

i am not one to sit around and wait. i am more of a doer and dont like when people drag their feet or look the other way.

when the bank owns the house, they must follow the same rules every other owner has to. The HOA should cut them ZERO slack.. enforce every rule, equally, no matter who owns the property. treat the bank the same as every other HO... if grass isn't cut, follow your rules, and do what you would do to others in the same situation.

Sharon your HOA is walking on VERY shaky legal ground. It sounds great and seems to work but expect a HUGE bite in the end...The bank may not be able to evict a renter but they are the ones who are to get the rent...NOT the HOA. The HOA is NOT to interfere with an owner and it's tenant. Having a rental agreement on property the HOa does NOT own does just that.

How does the HOa have the keys to these houses anyways? Did you all change the locks? Kind of illegal there too. Once the bank discovers what is going on, expect to have to pay them ALL the rent collected on these properties.

It's a risky thing your HOa is doing and I strongly advise looking at the aftermath/risk your putting ALL the members in. Who even covers the home insurance? If one of these houses burn down how much on the hook is your HOA in? Techinically ONLY owners are to pay dues. What remedy do you have IF a renter stops paying? There are laws about tenants too. they could now have "Sqauters rights" which is even a bigger issue.

I would be VERY nervous in practicing this rental process. Just NOT worth the risk...

We sought legal advice and counsel has given us their blessing. The HOA is holding title to the properties. In one case, the mortgage is mixed up in the MERS mess, in the other the lender dismissed their foreclosure and hasn't been heard from in over a year. The HOA thru our attornies have reached out to the lenders with no reply. As for the rent being paid to the lender, that's not the case. When and if the lender decides to proceed with foreclosure against the HOA, then the rent proceeds will go to the lender. Both of our tenants were well advised of the potential for paying their rent to the lender. Obama passed a law regarding tenants and their right not to be evicted. We are legal in every sense of the word and our attorney has walked every step of the way with the Board. I actually got the idea of renting the units from another community who is doing the same. In NC we are following the law, otherwise I wouldn't have sought this remedy.