So I serve on the local regional sewer authority. We had an owner occupied customer elect not to pay sewer bills to the tune of just over $20,500 including legal fees. They have a well so the authority couldn't simply just turn the water off like they do in the city. Nope this house is in the township surrounding the city.

The title search on the place shows where the owners took out a mortgage in 2004 for $60,000. It doesn't show any foreclosure actions filed, but it also shows where this mortgage was recently just purchased by an obscure sounding company. In Pa, there is no way for certain to know what the current loan balance is, without directly contacting the note holder.

The sewer authority did end up taking this property to Sherriff Sale after the owner refused to pay. The sewer authority is now the new owners. The former owners are still in the building and need to get ejected. Best we can figure, the only folks who know what owed against the place are the note holder and the former owners. It might be, that the note holder is not even aware of the note as it has been sold a few times over the years - so it has been a hot potato.

So multiple parts to this question

1) Think the sewer authority should contact the new note holder or let sleeping dogs lye?

2) How do you recommend an authority get the former owners out of the building? Think cash for keys when you are an authority is alright?

3) This property seems ripe for subject to, but how do you find out what is owed to see if it makes sense at all when you have a unfriendly or uncooperative party involved.

Property would cash flow and there should be some equity buried into this thing. But then again, who is going to buy a place where you don't know how much is owed against it?

I am assuming the solicitor did that.

That is the reason why I am thinking that this mortgage fell through the cracks.

Ray,

A title search is cheap.

1. In Indiana we must foreclose to get it to Sheriff sale so all parties would have been notified.

Consider contacting the mortgage holder - perhaps they would buy it from the sewer co.

2. Out? Ask the court for a sheriff assist. (Lockout). Or just tell them to go.

3. In Indiana no mortgages are owed after a sheriff sale.

Locally our rural sewer util will dig down and install a locking valve. Not difficult. No more flow and $1500 fee to open the valve.

THIS is why we handle the sewer bill for those homes.

There are roughly 20-25 total accounts that gotten the the unmanageable level for the authority. The state DEP doesn't allow for us to shut off service.

I do think though perhaps we could force them to pull an on lot permit.

At first thought you would think the note holder would want this issue corrected. But the note holder stays in a number one position and the authority is in number two (no pun).

I would have thought that the sheriff sale would have to have been known to the note holder?

Otherwise, how would the sale have even been possible?

Random thoughts.

Does the property owner have any idea what is going on?

Perhaps the owner is in a skilled nursing facility and really doesn't know what's going on. Was there personal service to the property owner of your foreclosure action and the sale notices? Perhaps Junior signed for Senior who no longer lives there and Senior has no idea.

File for depositions and "Interrogatories in Aide of Execution". The solicitor would need to tell you if you can do this. In other words, do they still owe the money since you took the property? As in what if they owe $25,000 to the sewer and $60,000 to the lender but you can only sell the property for $70,000.

Have the solicitor send them a letter giving perhaps three options of what to do with a short response time and have the constable deliver it.

File for ejectment sooner rather than later as that process will take a while.

Is there a redemption period?

Thank you Ken.

So, who is the actual owner of the property at this point?

Ken, does the sewer company owe the mortgage then?

I guess the original home owner owes the mortgage but the mortgage company could foreclose on the property no matter who bought it from the sale?

Ken, not sure either how that would work.

The municipal authority does have TWO attorneys on its staff - a senior one who has been with us for about 11 years and a second one who just got their license. They know what is going on. This isn't just five folks from duck dynasty taking a place with some shot guns.

Does the owner know what is going on? Monthly for the past 8 years they have been receiving sewer bills. The township sectary has reached out, the billing agency supervisor and the legal counsel all reached out.

Finally enough has been enough and the legal notices about the sheriff sale based on no less than 11 judgements that have stacked up over this time.

Based on what little I do know on a personal level, Grandpa might have some questions as too where is his money going.....It is not going to the delinquent sewer bills. Grandpa has asked the township and then the sewer authority what he can do. The sewer authority is not willing to enter into a payment plan with them at this point.

That said though, a payment plan for an investor might be the way for the authority to make the numbers work out for an investor. If an investor can get positive cash flow without having too much money into the deal, that could help balance the risk associated with the unknown note balance.