A Complicated Web - Vacant and Abandoned Property Law - State-by-State Review

Sep 16, 2026

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A Complicated Web presents a legal, state-by-state examination of existing law and proposed statutes addressing expedited foreclosures on residential vacant and abandoned properties. It explains how such properties contribute to community blight, increased crime risk, declining nearby home values, and rising municipal costs. The document argues for uniform national standards to streamline the foreclosure default lifecycle and accelerate return of properties to new owners. It also calls for harmonizing state foreclosure processes to reduce consumer harm caused by overcomplicated procedures.

LanguageEnglish

CategoryLetters

FormatPDF

Pages29

Reading Time10 min

AccessFree to download

Executive Summary

Issues Associated with Vacant or Abandoned Properties

Impact on Communities and Property Values

Crime Risk and Broken Windows Theory

Regional Effects and Vacancy Trends

A Complicated Web: Vacant and Abandoned Property Law A State-by-State Review of Existing Law and Proposed Statutes Concerning Expedited Foreclosures on Residential Vacant and Abandoned Properties Prepared by the Legal League 100 December 2017 Dear Colleagues, The Legal league 100 is the nation’s premiere collection of financial services law firms organized for the purpose of furthering its members’ commitment to supporting the mortgage servicing industry through education, communication, relationship development, and advisory services. The League’s multifaceted membership works tirelessly to be a leading force for industry standards, education, market research, and policy advocacy. Vacant and abandoned residential properties hurt communities and families because they are the precursors for blight in a community. These properties can potentially have a devastating effect on surrounding homeowners because they often become magnets for vandalism, squatting, and violent crime. In extreme cases, these properties have even led to the tragic loss of life. Surrounding properties can expect to experience a loss of value—a significant detriment to the primary source of wealth for many American families. A uniform national standard on expediting the disposition of these vacant and abandoned properties through the default lifecycle is critical to returning these properties to new property owners and homeowners for the benefit of the consumer, communities, servicers, and investors. In June, the National Mortgage Servicing Association released a proposal calling for the standardization of servicing policy and procedures as they pertain to the treatment of vacant and abandoned properties for the purpose of mitigating the consequences of vacancy. The Legal League 100 recognizes the adoption of standardized procedures as a first step toward protecting homeowners. The second step is the harmonization of state law as it pertains to the expediting of foreclosure upon vacant and abandoned homes. The document that follows is an overview of state law demonstrating the disparate treatment of these properties from state to state and the disservice to the consumer that is done by overcomplicating the foreclosure process. Our industry has a duty to develop common sense standards and practices that will simplify the servicing of these abandoned homes, shorten vacancy timelines, and ensure that surrounding homeowners are protected. Sincerely, Ed Delgado President & CEO Five Star Institute EXECUTIVE SUMMARY For many years, and especially evident since the crush of the volume of foreclosures that took hold after 2008, the mortgage servicing industry has been dealing with two significant issues: (i) how to efficiently and quickly handle the foreclosure of a vacant or abandoned property, and then (ii) after foreclosure, the disposition of any personal belongings discarded, abandoned, or simply left behind on the premises. ISSUES ASSOCIATED WITH VACANT OR ABANDONED PROPERTIES The problem of vacant or abandoned households has persisted, and lenders and servicers face issues on how to quickly move an abandoned property back to a tax-producing property in any given municipal entity. After the post-crash era of 2008, servicers have increasingly had to deal with the problems associated with vacant properties: Derelict houses, dormant factories, moribund strip malls, and other types of vacant and abandoned properties are among the most visible outward signs ofa community’s reversing fortunes. Properties that have turned from productive use to disuse are found in cities, suburbs, and rural areas throughout the country, and they vary widely in size, shape, and former use. But these vacant and abandoned properties are more than just a symptom of larger economic forces at work in the community; their association with crime, increased risk to health and welfare, plunging property values, and escalating municipal costs make them p

FAQs

Why are vacant and abandoned residential properties considered harmful to communities?

They often precede blight, attract vandalism and squatting, increase violent crime risk, and can lead to loss of life. They also depress surrounding property values and raise municipal costs.

What problem does the mortgage servicing industry face regarding vacant or abandoned properties?

The industry must handle foreclosure efficiently when properties are vacant or abandoned and, after foreclosure, manage the disposition of personal belongings left behind or discarded on the premises.

What solution does the document argue for regarding foreclosure processes?

It calls for uniform national standards to expedite disposition through the default lifecycle, and for harmonization of state laws to simplify foreclosure procedures and protect consumers and surrounding homeowners.

Sep 16, 2026

Upload by Bulrr