Thursday, May 17, 2018

5. Disadvantages to a municipality as to Judicial Sale results

A major problem with a Judicial Sale is that there is no action required by the municipality, school district or county to rehabilitate or demolish for the winning bidder. There is simply an obligation to pay the real estate taxes into the future. And, there is nothing to compel the winning buyer to pay future taxes beyond the Upset Tax Ales / Judicial Sale cycle.

Of Course,  the winning buyer can be cited under the municipality building code.The property shoulde be in compliance with the municipal building code. So, as such, an abandoned and blighted property must be secured and surrounding grass, trees, shrubbery maintained. Often the buyer is not sophisticated and merely pleased to acquire a "bargain" not understanding the cost to rehabilitate or demolish. Another "zombie" abandoned property is the result. Or, there is a situation where a person of means and capacity just simply buys at Judicial Sale collecting properties almost as if they are exhibiting the psychological disorder of hoarding. More zombie properties.

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