ROCKLAND, Maine — City councilors asked their attorney to contact two banks to see whether they are interested in fixing up a pair of homes the city acquired from them because of nonpayment of sewer fees.
City attorney Kevin Beal said the city ordinance is clear: If the former owner is living in a single-family home, the city should work with the former owner to get it back to him or her. The ordinance is less clear when the foreclosure occurs while a bank owns it.
The issue was discussed at the council’s Monday night meeting.
The city took ownership of three properties Aug. 15 after liens placed on them for nonpayment of sewer fees remained unpaid. The liens were placed on the properties on Feb. 15, 2013.
Mayor Larry Pritchett said the city has had cases in which homes have been returned to banks but nothing is done with them. He said willing buyers have had difficulties contacting anyone with the banks to make an offer.
Beal agreed with the mayor, saying there have been cases in which the homes have been left to deteriorate.
When the city forecloses on a home, it inspects the property and then requires the property be brought up to code standards before it can be returned. Councilor Eric Hebert said if the banks are interested in fixing up these homes, he would be willing to have the city talk with those banks. But if the banks are not interested in improving the homes, the city should not start the conversation.
The third home is owner occupied, and the city is working to return it to the former owner.
The highest valued property taken by the city 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 Feb. 21 after foreclosing on the homeowner, who owned it for nearly seven years before falling behind on mortgage payments.
Chase lost the property for not paying the city $284 in sewer fees. Chase since has notified the city in writing that it wants to pay off the sewer fees and have the property returned. There is no one living in the Katahdin Avenue residence.
A second property at 63 Warren St. was acquired by the city 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 U.S. Bank National Association.
Beal said there is one person living in one of the units on that property. The resident had no lease but was a caregiver to the former owner, who died. The person is looking for a new place to live, the attorney said.