With winter nearly upon us, it is important for foreclosing lenders to pay a visit to foreclosed properties to determine the vacancy status. If a foreclosed property is currently vacant and unoccupied, lenders should ensure that the property is properly secured and is prepared for the long and cold winter since frozen pipes and vandalism can drastically reduce the value of a foreclosed property.

If protecting the value of a foreclosed property is not enough to justify a visit to a foreclosed property, Minnesota Statute § 582.031 makes it mandatory, in the case of abandoned or vacant property, for a lender to enter the property, change or install locks on the doors and windows, and make reasonable periodic inspections. In addition, lenders should ensure that the utilities are functioning, the utility companies are being paid, and that the foreclosed property is properly ensured.

Although a foreclosing lender may incur additional costs associated with protecting and securing the property, these costs can be added to the amount necessary to redeem from the foreclosure. Additionally, lenders can ensure that the foreclosed property will be prepared for showings once springtime arrives!