STEP BY STEP ACTIONS FOR PROPERTIES MOVING FROM PREFORECLOSURE INTO A NEW OWNER'S HANDS (BANK or CORPORATION)
If you are a realtor handling a sale of a property that was foreclosed on, you should review these programs to determine what steps to take next. Here are some simplified steps to follow to make sure you've followed all of the various programs that might impact your transaction. The following is the proper sequence to follow after a property is assigned ownership to a bank or new owner emerging out of pre-foreclosure proceedings.
Once the sheriff sale concludes and the winning entity is a bank or corporation, a Property Recording Application should be completed. Here is a link with the details. Note the $35 fee doubles if not completed within 15 days of the sale, transfer or conveyance of the property.
The second possible requirement may be a Certificate of Code Compliance if the property is a one or two family home. If the bank remains the owner, a Certificate of Code Compliance (CCC) will be required as is the requirement for any absentee owner of any property city-wide. If the property is located in one of six Code Compliance areas of the city, regardless if the owner lives in it or not, a CCC is required. If owner occupied and the home is located outside of the CCC areas, no certificate is required. After application is made and the fee is paid an exterior inspection will be made. If no violations, the certificate is issued for one year. If violations are found, the new owner has the responsibility to correct. After corrections are approved, the Certificate is Issued and the building can be occupied. Here is the link on the Code Compliance program. Note the $90 fee doubles if not completed within 15 days of the sale, transfer or conveyance of the property.
Is the building going to remain empty? From the date of the sale and/or transfer, the clock begins with regards to qualifying for Vacant Building Registration (VBR) program. If the property is unsold, remains in the bank's name and remains vacant, they have 30 days from the transfer or conveyance before the requirements of VBR kick in. Here are the details of that program.
On the 31st day from the date of sale, the bank should register the vacant building under the VBR program with DNS. No fee is paid at this time. After the application is received, an inspection date will be set to inspect the property for code violations. Following that inspection, the property will be monitored by DNS to see that it is still vacant. If it is sold, or a permit is taken out for restoration, or one of the other exemptions listed in the VBR ordinance apply, nothing more is required except the usual property maintenance. Otherwise the property must remain secured, insured and maintained to the standards of the VBR program.
If after the inspection and the building remains vacant for six months, a $250 fee will be charged and another 6-month monitoring period will begin with the corresponding fees at the end of that 6-month period. This process will apply until the building is sold and the new owner takes control of the property.
All of the respective forms and applications for these various programs are located on the DNS Forms page.
Check lists that includes the items the inspectors will be looking for are listed on the DNS Documents page.
Depending on the property's location other DNS programs may impact your property. For example, the Rental Registration Inspection program impacts rental property in the UW-Milwaukee and Lindsey Heights neighborhoods.
Make your Buildings Talk to You!
An excellent way to monitor what is going on at your property or those around you is to use E-NOTIFY. This FREE service is as simple as signing up and getting e-mails from the City whenever something involving DNS or DPW affects the property you are watching. This is great for tracking code violations, complaints, crime reports and new programs being added to neighborhoods. You will be the first to know! Go to the City's Home Page. (www.city.milwaukee.gov) and click on E-notify to get started.
Don't Forget FREE Landlord Training!
First time landlord? Feeling like you are losing contorl of your properties? Take advantage of the City's award winning Landlord Training Program where you can learn the latest legal developments, hear new ideas on handling tenant issues and know what steps to take to legally and successfully manage your property. Go to the Landlord Training page at: http://www.city.milwaukee.gov/Landlordtraining