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Article: Who is responsible for maintenance of a property during foreclosure proceedings?
- Article from:
- Real Estate Weekly
- Article date:
- August 18, 1999
- Author:
CopyrightCOPYRIGHT 1999 Hagedorn Publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The responsibility for damages to property during the pendency of a foreclosure action was considered in the case of Trustco Bank, National Association v. Eakin (681 N.Y.S.2d 410). None of the parties involved in foreclosure proceedings - the property owner, the foreclosing bank, nor the court-appointed receiver - made the property secure so as to avoid vandalism.
Robert Eakin and Christine Eakin contracted to sell their two three-story walk-up apartment buildings in Troy, NY for $160,000. The transaction, however, never closed, and shortly thereafter the Eakins defaulted on the mortgage held by Trustco Bank which covered the property.
Trustco Bank ...