Over Easter weekend, over 1,000  University of Michigan  students participated in Detroit Partnership Day and helped demolish hundreds of abandoned homes in the area, as well as cleaned parks and painted murals ion 20 sites in northwest and southwest Detroit.

The problem of abandoned homes is an interesting dimension of the housing crisis in Detroit, as well as in Ann Arbor and around the country.  With so many homes being foreclosed upon, the “orphaned” properties that remain have created difficult legal disputes as to who should care for the properties while the foreclosure process occurs. In many cases, the homeowners abandon their homes upon receiving their first notice.

The vacant properties bring down the value of the neighboring properties. While they are empty, the houses may be further destroyed by squatters or vandals spray-painting them. As a result, the properties remain abandoned and are not maintained.  They may create hiding places for gangs and crime.   In addition, existing damages and defects are not repaired by the bank holding the titles. They also attract arsonists

Disputes also occur because while the borrower is still the owner, the lender keeps the lien. Many court cases arise as to who will pay the taxes and maintain the houses.  More often than not the local cities lose out on the taxes. There are also numerous cases where the value of the home was so low that the banks just boarded them up and left them.

In several areas of the United States, “Bank Days” are being held in courtrooms. Judges and prosecutors are cutting deals and demanding that the lenders maintain, repair and do basic upkeep. Certain judges even fine the lenders if the house falls into disrepair.  The owners are not getting off completely free though from their responsibilities. For other judges, the taxes, upkeep and maintenance are split between the lender and the owners.

Homeowners, if you are in trouble with your mortgage and have received notice of pending foreclosure, seek help immediately!  There is plenty of foreclosure help available in Michigan, with housing counselors available right here in Washtenaw County.   Do not leave your home until the foreclosure is complete.  Until that time, the home is your responsibility to maintain.

Martin Bouma is a Certified Distressed Property Expert (CPDE) who can help you find an alternative to foreclosure.  If you are interested  in buying or selling a home , The Bouma Group can help you with your real estate needs in Ann Arbor, as well as keep you up to date about  Washtenaw County and Ann Arbor neighborhoods.