For the past few years we have seen houses go from sellable condition to near shambles as they go through the foreclosure process, which can take years in some cases. It is pitiful to watch these homes become infested with mold, rodents and become vandalized while the foreclosure takes place. The properties bring down the value of surrounding properties and can eventually effect the value of homes through out the market area.
Locally we have seen the exact opposite. Banks beginning the foreclosure process on homes that are not default on payment, taxes or insurance. Why? Because they have been vacated. The banks are stating that one of the conditions of the loan is that the buyer is to reside in the property, thus the owner moving from the residence is a violation of the terms in the loan agreement.
I have heard of two instances in which the bank has gone into an unoccupied property, here in Marion, and changed the locks on homes that were not in default though they were unoccupied.
I have heard of this happening on two different properties, both of which were ironed out before legal action had to be taken. I’m unsure and not of the caliber to make a call on the legality of this practice, but none the less it is a situation owners should be aware of if they are moving from a home that they hold title to.
