Page 24 - John Hundley 2013

► local authorities have requested the securing or winterizing of the property due to it being
declared an imminent danger to the health, safety and welfare of the public;

► the property is open, unprotected and in danger of significant damage due to vandalism or
weather.

The two or more conditions need not exist for vacant lots zoned for residential development, but
such lots must be “in need of maintenance, repair, or securing” for the fast-track provisions to apply.

“Fast-Track” Processing: The act provides an expedited judgment and
sale procedure for property within its scope. Upon motion and notice, including
the conspicuous posting of notice on the property, the plaintiff may move to invoke
that procedure, which motion is to be heard on an expedited basis. If upon
hearing the motion the court finds the real estate is abandoned, it is to
“immediately proceed to a trial of the foreclosure.” Expedited treatment shall not
be granted if the mortgagor, unknown owner or lawful occupant appears and
objects. A fast-track judgment may be vacated prior to confirmation of the sale if
such a person appears and shows that he has not abandoned the property.

Following entry of judgment, abandoned property “shall be sold at the earliest practicable time.”
The act permits confirmation motions to be made prior to sale provided they are heard after the sale.
Confirmation hearings are to occur “at the earliest practicable time after conclusion of the sale.” The
act requires that notice of the confirmation be sent to local authorities and any known insurers.

Personal property left in the abandoned structure is deemed to be abandoned and may be given
to charity or disposed of.

New Fee Imposed: The act imposes a special fee of up to $500 on residential real estate
foreclosures filed from June 1 through the end of 2017. The amount is dependent on the number of
foreclosures the plaintiff has filed. Proceeds go to an Abandoned Residential Property Municipality
Relief Fund and the Foreclosure Prevention Program Fund.

No Cause of Action Under HAMP Found

Yet another federal Court of Appeals has agreed with that portion of Wigod v. Wells Fargo Bank,
N.A., 673 F.3d 547 (7th Cir. 2012), which holds that the Home Affordable Mortgage Program
(“HAMP”) does not contain a federal private right to sue. See Sharp Thinking No. 61 (April 2012), No.
82 (Jan. 2013).

However, Spaulding v. Wells Fargo Bank, N.A., 714 F.3d 769 (4th Cir. 2013), departed from
Wigod in finding that no common-law contract or fraud claims were stated in the case before it.

With reasoning reminiscent of Jackson v. Bank of Am. Corp., 711 F.3d 788 (7th Cir. 2013) (see
Sharp Thinking No. 88 (April 2013)), the Spaulding court also rejected the plaintiff’s claim for
negligent evaluation of the mortgage modification application.

- John T. Hundley, 618-242-0246, Jhundley@lotsharp.com

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