That really is a shame. And what a contrast to your lovely, manicured garden beds!

So awful- one would think the state would be able to take over the property, rehab and sell or give it to some poor people.

That is a lovely old house. It has HUGE potential!

Is the mortgage company trying to sell? Or, is it content to do nothing?

Maybe a bunch of GW people could pool our money and buy it. Fix it up, sell it and split the profits!

Something is off with your story. When a mortgage company forecloses, they can't try to collect on any debt until that property has been resold and funds from the sale are applied to the outstanding debt. IOW, they can't have the collateral (the house) and the note (the debt) too. Once the house is sold, they can sue the estate (not the heirs) for the balance of the loan plus all costs for upkeep but not while they still hold title of the house. Costs for upkeep may not include easements which is probably why they only mow ten feet out, but that's a more local thing and depends on where you are.

Sometimes seeing potential in a home when it gets that bad is difficult, not to mention the cash one has to put into it to bring it back to its youth. It really is a beauty. What a shame.

If the house falls into the "attractive nuisance" category I'd think it would have to be repaired/demolished. Too bad there's no regulation for "eyesore". Banks Don't Know Real Estate.

I did mortgage property preservation for many years, and I generally agree with lukiiirish and sylviatexas1. There are a few caveats. If there is more than 1 loan, or there are other liens or probates, it can get a bit complicated and take a while to sort out. Also, the debtor can answer the foreclosure, and that can tie things up.

As for the grass cutting. The type of work order to which you refer is called just as they told you... a 'Perimeter Cut'. It's mostly used on properties where up-keep over a long term can get costly. It's a type of grass cut mandated on the banks by insurance companies. Most often it's performed on REO's (Real Estate Owned... or bank-owned properties.)

The insurance companies make the bank do some minimal maintenance just for a fire break and pest control. Perimeter cuts are also done for visual appeal to REO properties that are on, or soon to be going on the market.

As you pointed out, government ordinances override what the banks decide to do, and the city can first warn, then fine or back-charge the banks, or owners, for infractions and any work the city does (they can even tack it to the property tax.) However, whether it was formally worked out, or cities took a practical stance on their own, during the height of the foreclosure crisis many local governments gave banks a lot of leeway over unperformed maintenance.

My town has been mowing the grass on bank owed properties and adding the bill to the tax bill.

We have the same thing going on next door to us. The house, along with 10 acreas has been empty over 10 years. So many people have been interested in buying it. For years it was never mowed and then it was for a couple years with just part of it being mowed. It hasn't been mowed this year. We now have thistles everywhere.. I think it is a racket!,!

Our town has an ordinance that lawns in a residential neighborhood may not exceed 6 inches. The homeowner is responsible - whether it's an individual or a corporation. After several warnings the town will mow and add it to the taxes along with interest and penalties.

lukkiirish, I agree there is something odd going on here. We understood from the brother before he died and his nephew after the death that there was a reverse mortgage on the house and that over the 20 years or so after the agreement, far more had been paid out to the brother and sister living there than the house was worth. Then nearly a year ago we were told by another person in the position to know that it was not true. It was in fact a mortgage on the house.

Nearly a year ago there was posted on the front door of the house and then in the local newspaper a notice from the County Court of Common Pleas Listing : One National Bank, plaintiff, followed by a list of the heirs, defendants. And a motion for service upon the defendants. I may be wrong, but I take that as a lawsuit in the works.

Well whether it's a reverse mortgage or a standard mortgage, if they've foreclosed, they have the collateral for the loan. Typically (but not always) as protection in a down market, (like we had during the recession) valuations and/or inspections of the property are requested often by the investors. This is to ensure that they don't over extend on the mortgage. That said, there could be some fraud involved where the bank was deceived. Maybe the mortgage company was never advised of the deaths and kept paying, and/or the place was trashed before it was vacated or worse all the cabinets, fixtures and copper removed. Years ago, when I worked in foreclosures I saw some really unusual and off the wall situations. It was always fun and interesting to see how they played out.

That's a shame. It was a nice house.

I don't know how true it is, but we have a similar situation in our neighborhood and was told that the mortgage company can count it as an ASSET until it is sold. If it then sells for less than is owed, a LOSS shows on their books.

There was never any indication of foreclosure and the house has not been put up for sale. It will be interesting to see how this plays out.

The brother and sister, aged 98 and 94, were taken out of the house against their will. He had advanced cancer and she was legally blind and was trying to take care of him in this 3 story house with just one bathroom on the second floor. He could not get up or down stairs. and she, a tiny thing at 4' 7" and 75 pounds, could not care for his needs. A visiting nurse was the one who did what was necessary to get them out and into a nursing home. He died within a month and she lasted less than a year. She was a sweetheart, he however was not. The family said it had nothing to do with his age, he was spoiled by his mother and was nasty and arrogant all his adult life.

His massive collection of antiques included some ancient Chinese vases, etc from the 14th century . Yet all the collection was stored in an old run down mansion that he rented. The 18 rooms were filled with all kinds of valuable pieces collecting dirt just piled around in no organization with just narrow paths to get through. It was unbelievable to see what was there and the way the two of them lived at home in virtual poverty.

Home was a large estate that was sold of an acre at a time in order to support his habit. Ours was the last lot sold.

How stupid! You know the old saying "you can't squeeze blood out of a turnip!" Just foreclose already and sell the dang place. I see so many houses left abandoned...it will just end up being torn down because a house cannot be left unattended for that long. SMH!

Ok, ha! Now I am reeeally confused and intrigued. You say that the mortgage company is your neighbor, the house is vacant and they are sueing the heirs. Hmmm. So obviously, the reverse mortgage reverted the property to the mortgage company upon their death. The only reason I can assume that the mortgage company would have grounds to sue (just based on my limited experience with this type of mortgage) is if the deaths went unreported to the mortgagee and they continued to pay out funds after the death of both homeowners; that is fraud and would give them legal grounds to sue.

However if the mortgagee paid out more money than the house is worth PRIOR to the deaths of the owners, according to the guidelines of the program, that is basically their loss. The antiques should have no bearing because they are not a fixture of the property unless of course one was a very expensive chandelier or something, it was intact at the time the loan was originated and the heirs removed it after the deaths.

I sure hope you keep us posted, it will be fun to learn more detail and see how this one goes!