Until the foreclosure process is finalized, apartment buildings are the responsibility of no one in particular. Around New York City, writes Chris Opfer, foreclosing banks are increasingly being given the task of maintaining and repairing them.
"The court typically appoints a receiver to collect rent and use the money to perform limited maintenance, but not necessarily to make significant physical improvements."
"In the Brooklyn case, the court didn't appoint a receiver until almost a year after the foreclosure suit began. A court order limits him from spending more than $2,000 on a single repair without the bank's consent.
Physical problems often occur in these rent regulated apartment buildings facing foreclosure both because the buildings are typically older and require substantial maintenance and because the relatively low rent income made it difficult for landlords to make major repairs."
FULL STORY: Foreclosures Leave Apartment Buildings in Need of Repair
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