Pennsylvania Adopts Foreclosure Provisions
Pennsylvania has enacted provisions regarding the foreclosure of vacant and abandoned properties. These changes are effective as of December 17, 2018.
Purpose and Scope
The new provisions are referred to as the Vacant and Abandoned Real Estate Foreclosure Act. The purpose of the Act is to accelerate foreclosure proceedings on vacant and abandoned properties, as these properties often present a danger to the health, safety, and welfare of a community. The terms “vacant property,” “vacant and abandoned property,” and other relevant terms are defined at the outset of the Act.
Certification of Property
During foreclosure proceedings, a property shall be certified as vacant and abandoned if any of the following criteria is met: 1) a creditor or purchaser has been designated as a conservator of the property under the Abandoned and Blighted Property Conservatorship Act; 2) the property is certified vacant and abandoned by the municipality in which it is located; or 3) the property is certified vacant and abandoned in a judicial proceeding.
Requirements of Certification
A mortgaged property may be certified as abandoned by a municipality or in a judicial proceeding if the property meets at least three of the following indicators of abandonment: 1) multiple windows and doors are boarded up or damaged, 2) the property has been stripped of copper and other metals; 3) furniture, appliances, and personal items have been removed from the property, 4) utility services to the property have been shut off, 5) newspapers or other mail has accumulated on the property, 6) trash or neglected vegetation has accumulated on the property, 7) the property has been in violation of municipal building or housing codes for more than one year, 8) written and signed statements have been issued by neighbors or delivery persons indicating that the property has been abandoned, 9) hazardous substances are present on the property; or 10) the owner has confirmed abandonment of the property in writing.
Vacancy is presumed if the property was found to be vacant after two inspections. Upon the first inspection, notice must be posted at the property advising any occupants to contact the person conducting the investigation and that failure to do so will have adverse legal consequences. If no notice by an occupant is received, a second inspection may be completed. The second inspection must occur at least forty-five days after the first inspection.
Foreclosure
A vacant and abandoned property shall not be subject to mediation, conciliation or diversion. Any disclosures required to be sent to the owner of the vacant property can be placed in a conspicuous location on the mortgaged property if no alternate mailing address is discoverable.
For the full text please refer to House Bill 653
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
Comments are closed.