ROCKLAND, Maine — The city is the new the owner of three properties after the owners, including two banks, failed to pay overdue sewer fees.
In one case, the city took ownership of a property held by a bank that had recently foreclosed on the homeowner.
In a second case, a different bank was in the process of foreclosing on the property when the city took it. That bank wants the town to return the ownership rights so the financial institution can complete its foreclosure, but the city says the bank has to pay the sewer fees first.
The third city-acquired property belonged to a private homeowner.
City attorney Kevin Beal said the City Council’s preference has been to get the overdue fees paid and to return properties to the prior owners, particularly when the owner lives in the house.
The city took ownership of the three properties on Aug. 15 when the period for late payment passed. The city had placed liens on the three properties on Feb. 15, 2013, when the sewer fees became delinquent.
The highest valued property taken by the city on Aug. 15 was at 20 Katahdin Ave. The 1,420-square-foot ranch on a little more than a quarter acre is assessed by the city at $151,427.
J.P. Morgan Chase Bank took ownership of the property on Feb. 21 after foreclosing on the homeowner who had owned it for nearly seven years before losing it for falling behind on mortgage payments.
Chase lost it for not paying the city $284 in sewer fees. The city attorney said Chase had been notified by mail and an official had signed for the letter, which alerted the bank that the city would acquire the property if the fees weren’t paid.
Email requests for comment sent Monday morning by the BDN to Chase representatives were not immediately returned.
Chase has notified the city in writing, however, that it wants to pay off the sewer fees and have the property returned, Beal said. There is no one living in the Katahdin Avenue residence, he said.
A second property at 63 Warren St. became city acquired last month for nonpayment of $283 in sewer fees. That property, which consists of a two-family home on one-sixth of an acre assessed by the city at $127,900, was in the process of being foreclosed on by a separate bank, according to Beal.
That property had belonged to the heirs of Robert Richardson. Beal said U.S. Bank National Association has contacted the city about how the property can be reconveyed to the former owner so that the bank can finish foreclosing on it. Beal said he asked that the request be made in writing but has not yet received such a request.
Beal said there is one person living in one of the units on that property. He had been living there when the former owner died. The person has no lease, Beal said.
The third foreclosure that occurred last month was at 26 Rockland St., which was owned by Robin Hall. The city acquired the property from Hall for nonpayment of $197 in sewer fees. The 713-square-foot colonial style house on one-sixteenth of an acre is assessed by the city at $114,900. That home is occupied by Hall, and the city is working on getting the sewer bill paid and giving ownership back to Hall.