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TWSA to look at policy dealing with foreclosed homes
By Justin Goble
Attorney Eric Ridenour of Sylva spoke to members of the Tuckaseigee Water and Sewer Authority last Tuesday, Sept. 16, about a sewer allocation that’s been rescinded.
Ridenour said he recently bought a house off Hampton Street that he is remodeling. When he went to pay his deposit and have the water turned on, he said he was told he would have to pay for a new water and sewer allocation, which would cost $4,000.
Since allocations run with the land, Ridenour said he researched the issue to see why TWSA had taken this one back.
“I searched the title and liens and saw no notice that the allocation had been repossessed,” Ridenour said. “It goes with the house. That allocation is a good one, and TWSA can’t take it without paying for it. I don’t see how TWSA can unilaterally take it.”
Ridenour said the house had been foreclosed on earlier this year. He found out that the last time the water and sewer bill had been paid was December 2007.
TWSA Director Joe Cline said the problem arose because of the foreclosure. When banks foreclose on a house, TWSA is not notified of that fact, he said. After the homeowners fail to pay a bill for six months, TWSA policy states that the authority can pull that allocations.
“It’s not like a bankruptcy,” Cline said. “If someone goes bankrupt, they let us know. We can’t do anything with that allocation. But if a house is foreclosed upon, we don’t get any notice.”
TWSA board members Stacy Knotts said she would like to see TWSA come up with some policy to deal with situations like this.
“It’s doesn’t seem to me like that’s a debt that should be put on a new homeowner,” she said. “They don’t know that the allocation has been pulled. If we take it, we’re basically making the house unlivable.”
Cline agreed, saying he thought it would be unfair for a new homeowner to be forced to pay for a new allocation. However, he said coming up with a clear-cut policy on issues like this may be difficult.
“How do you draw the line between all of these things?” he said. “People in this situation at least deserve consideration.”
TWSA members will discuss the issue at their next work session, set for Tuesday, Oct. 14, at 5:30 p.m.
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