Receivership 101 How to Buy Property Through Receivership
Kathleen E. Byrne Deputy Asst. Commissioner for Litigation
[email protected]
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What is Receivership? The City petitions the Court to appoint a third party (Receiver) to take control of a vacant property and auction it to a buyer who can then rehab it.
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What is a Vacant Building? A structure that is open to causal entry, has boarded windows/doors OR lacks intact windows, sashes, walls, or roof to repel the weather.
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What is a Vacant Building? Baltimore City Code defines vacant properties as “nuisances per se.” A vacant’s designation as a “nuisance per se”can trigger a receivership action.
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How Does the Court Process Work? Receivership Action is filed in Court Property owner and all others with a secured interest are served as Defendants
Bureau of Liens and all judgment creditors and lien holders are notified
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How Does the Court Process Work? Who gets “appointed” to sell, demolish or rehabilitate? Court may allow the owner, mortgagee or other person with an interest in the property to rehab IF, they prove to the Court they have the $, means and experience to do so, OR… Court will appoint a Receiver to sell the property to abate the “nuisance”
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How many receiverships are filed?
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Who is the Receiver?
One House at Time, Inc Vacant Building Receiver for Baltimore City www.onehousebaltimore.org/
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What does the Court order? The Receiver MUST… Transfer to abate nuisance by public auction to pre-qualified bidders Public Auction • •
Follow rules regarding Notice of Public Auctions Sell the property to the high bidder at public auction
Pre-qualified Bidder •
Must demonstrate the ability and expertise needed to rehabilitate the property within a reasonable time
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What does OHAAT Do? • • • • • • • •
Prequalifies Bidders Advertises Auctions Schedules Auctions Sells Property at Auction Submits Reports of Sale to Court Schedules Settlement Distributes Proceeds from Settlement Terminates receivership via Final Accounting with the Court
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What is Expected of the Receivership Buyer?
The receivership buyer takes on the Vacant Building Notice and MUST abate the Vacant Building Notice. Generally, within one year of settlement.
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Want to purchase Receivership Properties? Let’s Get Started!
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Finding properties up for auction
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Citiview Maps
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Finding properties up for auction
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Finding properties up for auction
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Finding properties up for auction
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www.onehousebaltimore.org
Finding properties up for auction
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www.onehousebaltimore.org
Finding properties up for auction
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Finding properties up for auction
Bidder Application Instructions! ! Thank you for your interest in becoming a bidder with One House At A Time. Please complete the following application. You can type directly into the fields on the form and then print it out. Or, if you prefer, you can print out a blank form and fill it in by hand. Then, scan/email, fax, or mail the completed form and supporting documents to our office. Contact us with questions or for assistance:
[email protected] or 410-467-1826. "
www.onehousebaltimore.org
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How to Bid OHAAT QUALIFIED BIDDER APPLICATION COMPLETE ALL 6 SECTIONS OF THE APPLICATION, SIGN & DATE IT, ATTACH THE REQUIRED INFORMATION (DO NOT ATTACH THIS SHEET) AND MAIL, EMAIL OR FAX IT TO: One House at a Time 3553 Chestnut Ave., Suite 2N Baltimore, MD 21211 443-438-9113 (fax)
[email protected] THE COMPLETED APPLICATION & ALL REQUIRED ATTACHMENTS MUST BE RECEIVED NO LATER THAN FIVE (5) BUSINESS DAYS BEFORE THE AUCTION http://www.onehousebaltimore.org/wp-content/uploads/2012/07/Application-7.24.12.pdf
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Auction Day
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Terms of Sale All purchases are subject to the existing vacant building notice Purchasers are required to satisfy the terms of the pre-existing vacant building notice
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Terms of Sale Cash deposit of $3,000 due at auction
Deposit shall be increased to 10% of the purchase price within 24 hours at the Auctioneer’s Office.
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Terms of Sale Balance to be paid in cash at settlement, which shall take place within ten (10) business days following final ratification of the sale by the District Court of Maryland for Baltimore City at a location designated by the Receiver.
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Terms of Sale Failure to timely settle could result in the deposit being forfeited and the property may be resold at the risk and expense of the purchaser All properties are sold AS IS Sale and Auction subject to additional terms
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City’s Expectations of Buyer at Receivership Auction
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Timeframe for Rehab Day 1 Court Appoints Receiver
Day 90 Receiver Auc0ons Property
Day 160
Day 220
SeClement/ Transfer to New Owner
Ac0ve open permits for Rehab
Day 150 Court Ra0fies Sale
Day 360 Use & Occupancy
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Websites
VacantsToValue.org
V2V http://www.vacantstovalue.org/Explore.aspx#streamlined City View Map (V2V) http://cityview.baltimorecity.gov/housing/
OHAAT
hCp://www.onehousebal0more.org/wp-‐content/uploads/
2014/02/ohaat-‐bidders-‐applica0on-‐v3.pdf
see tab – “Properties” upcoming auctions & properties for immediate sale“Become a Buyer” bidder application and criteria
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