Lender sues city over empty house

By Jenny Davis

Thursday, Sept. 18, 2008 | midnight

After a December 2007 fire damaged a home in the northwest part of town, making it unfit to live in, the owners stopped making mortgage payments and the foreclosure process began.

Now, nine months later, the damaged, empty home continues to be an eyesore to the neighborhood, and mortgage lenders are asking that they have another 180 days to fix the problem.

Countrywide Home Loan Services, which contracted with Fannie Mae to service the loan for the home at 104 Joyce Way, near Torrey Pines Drive and U.S. 95, filed suit Aug. 28 against the city of Las Vegas Neighborhood Services agency to receive more time in deciding whether to demolish the home or repair it.

The suit was filed after Neighborhood Services posted a notice and order on the home June 24 saying that it had become a public nuisance and is dangerous. The city gave the owner 10 days to correct the problem or the city would begin the process of demolishing the home.

According to the suit, Countrywide became aware of the notice after the 10-day notice had expired. It then immediately sought to delay the demolition.

Countrywide says it needs more time because the foreclosure process is still under way, and Fannie Mae is the investor, but not the current owner of the home.

"It would be most appropriate for Fannie Mae to repair the property once they are the owner of the property at the foreclosure sale," the suit states.

According to the document, the home is estimated to be worth about $132,800. Countrywide sought bids for both repair and demolition of the property and to repair would cost about $89,000 and to demolish would cost about $100,000.

Countrywide is working with the city and a judge to determine the amount of time it should be given.

The city is willing to give Countrywide 90 days, but not 180, said Mary Ann Price, Neighborhood Services spokeswoman.

Jenny Davis can be reached at 990-8921 or [email protected].