Community Development Banking List
02-16-2012, 10:36 AM
Original message from: BBezdek@law.umaryland.edu
Dear Colleagues on this list,
I write to ask you to tell me off list, how commonly you encounter 'heirs property' as a problem in your work, either as CD lender or as developer, for all you CDC folks on the list. I'm trying to understand the extent to which "Heirs property" impacts development, including the extension of government weatherization and similar services, to real property held by multiple owners - whose title is genuine but not readily discerned by resort to the land records; as when several tenants in common hold title having acquired it by inheritance from a relative, thus several relations own fractional shares; there is no deed or other writing that names or reflects all the owners, nor a binding agreement by which the co-owners arrange who occupies or is responsible for maintenance, real estate taxes, etc.
As you may know, several states have Heirs Property Preservation projects ongoing, through which to aid (primarily) family farmers to hold onto their land. But recently I've been hearing from officials around my state, seeking policies and strategies for making loans where title is in this heirs-property state. The burden on low-wealth, often elderly, households to quiet title in the way that lenders typically prefer, generally means that without some innovation, such owners are left out of programs intended to aid them.
If you would, kindly reply to me off-list. I will be grateful to know (1) in what context (urban, rural, lender, community development) you encounter this problem; (2) with what frequency; and (3) how your programs respond; (4) your thoughts about what might be possible.
Thank you.
Barbara Bezdek, J.D., LL.M., Professor of Law
Director, Community Recovery Clinic
University of Maryland
Francis King Carey School of Law
500 W. Baltimore Street
Baltimore, MD 21201
bbezdek@law.umaryland.edu
410.706.8392
Dear Colleagues on this list,
I write to ask you to tell me off list, how commonly you encounter 'heirs property' as a problem in your work, either as CD lender or as developer, for all you CDC folks on the list. I'm trying to understand the extent to which "Heirs property" impacts development, including the extension of government weatherization and similar services, to real property held by multiple owners - whose title is genuine but not readily discerned by resort to the land records; as when several tenants in common hold title having acquired it by inheritance from a relative, thus several relations own fractional shares; there is no deed or other writing that names or reflects all the owners, nor a binding agreement by which the co-owners arrange who occupies or is responsible for maintenance, real estate taxes, etc.
As you may know, several states have Heirs Property Preservation projects ongoing, through which to aid (primarily) family farmers to hold onto their land. But recently I've been hearing from officials around my state, seeking policies and strategies for making loans where title is in this heirs-property state. The burden on low-wealth, often elderly, households to quiet title in the way that lenders typically prefer, generally means that without some innovation, such owners are left out of programs intended to aid them.
If you would, kindly reply to me off-list. I will be grateful to know (1) in what context (urban, rural, lender, community development) you encounter this problem; (2) with what frequency; and (3) how your programs respond; (4) your thoughts about what might be possible.
Thank you.
Barbara Bezdek, J.D., LL.M., Professor of Law
Director, Community Recovery Clinic
University of Maryland
Francis King Carey School of Law
500 W. Baltimore Street
Baltimore, MD 21201
bbezdek@law.umaryland.edu
410.706.8392