Foreclosure Related Bills Awaiting The Nod From The Governor

June 25th, 2008 | Tags: Foreclosure

The foreclosure bill is about to swing into action and is just awaiting the nod from the Governor Carcieri. From now on banks repossessing properties in Rhode Island will be liable to pay taxes and bear maintenance costs. The bills aimed at hitting out at banks and mortgage companies that have been operating from outside the state. These are only two of the handful of foreclosure related bills.

The Tenants Notification Bill needs special mention as it failed to get through. It aimed to give protection to the tenants of foreclosed units. The owners would have to keep up with the essential facilities like water and electricity. Also it would require that the tenants would have to be given a 60-day notice of eviction. The Rhode Island Mortgage Bankers Association opposed this bill because they feared that occupation by the tenants for a good length of time would prevent the property from being sold. But the supporters of the bill argued that the tenants were being the foreclosure victims for no fault of theirs. The tenants continued to pay the rent and did not even know about the status of the unit. They were made to suffer because the former landlord did not pay water and sewer taxes. The failure of the bill led to strong reaction.

One bill that is waiting for the governor’s signature is The Rhode Island Foreclosed Property Upkeep Act that lays down that any financial body that acquires a foreclosed property has to deposit a bond amounting to 25% of the assessed value of the property with the municipality so that the latter will have the power and the means to rectify any violation of code by the owner.

The bill also intends to crack down on dealers of scrap metal that buy copper pipes and the like that have been dismantled from foreclosed houses. It will require the dealer to get a special license to deal with the same. The seller will also have to sign a statement vouchsafing that the person is the authorized legal owner of the house from which these fittings have been taken. Details of the property and when and where the goods have been taken will have to be given. These documents will have to be kept with the dealer for two years.

Condo owners were also given relief by an amendment of the condo law to allow them to recoup foreclosure losses.