Chautauqua foreclosure auctions

Demand house repairs

Chautauqua foreclosure auctions should include inspection mandate

Updated: 03/26/07 6:39 AM

 The Chautauqua County Legislature should support an attempt by two of its lawmakers to make winning bidders in tax foreclosure auctions accountable for structural improvements — a measure that could go a long way toward making sure that houses in the region don't just fall into disrepair at the hands of absentee landlords or unprepared homeowners.

The entire foreclosure process, as it stands, is long and arduous and can be relatively ineffective in providing any substantive improvement to distressed neighborhoods scattered throughout the county. When an owner fails to pay city, county and school taxes for three years, and has been given an opportunity to pay any arrears, the property goes on the foreclosure list.

The resolution wants to tweak the process by making winning bidders at those auctions authorize the local code enforcement officer to enter the property after the purchase has been made. The main concern isn't necessarily the need for a new coat of paint, but the hazard of improper and unsanitary plumbing, illegal and improper wiring and other health and safety hazards.

Chautauqua County, like other parts of Western New York, has older housing stock that appeals to out-of-town buyers. Some of these purchasers are would-be landlords, while others are the typical Internet trollers from all parts of the country and beyond, salivating at what they consider low prices. Once they discover there are few, if any, "big returns," taxes go unpaid and these lots eventually wind up back on the tax foreclosure list. Same story, different towns.

Ronald A. Szot, a Democrat in Dunkirk, and Chuck Cornell, a Democrat in Jamestown, are cautiously optimistic their resolution in response to that threat will gain approval during the next regular Legislature meeting Wednesday. The legislators want to give would-be purchasers something to think about — accountability. Instead of swooping down and grabbing up "deals," purchasers would be mandated to make significant repairs.

Critics of the plan worry that, if approved, this new rule will have a chilling effect on the auction process. Chautauqua County holds "absolute auctions," so whatever the property will bring, it brings.

A professional auctioneer generally starts high and solicits bids until someone begins. If a property is worth $100,000, the auctioneer will ask if anyone is willing to pay that price and keeps going down until someone says yes, and then competitive bidding starts to go up. The county takes a loss on some properties and gains on others. But for the last 23 years, the county has always gotten, overall, more money than the taxes that are owed, according to officials.

But those throughout the county who have dealt with the problem of decaying stock and vacant properties view this proposal as a means to revitalize areas that have been plagued with deteriorating structures. While the inspectionand- repair mandate would add accountability, fair notice of that requirement would make this a reasonable change to the process. The legislators' proposal is an effort to prevent people from speculating at auction, milking the property and not paying taxes so that the county winds up with the property again in a more deteriorated condition. That's good protection for the county, the property — and the taxpayers.

 

For more information on Chautauqua Lake Real Estate & Living visit: www.chautauqualakehomes.com