Pub. 4 2013 Issue 3

fall 2013 19 West Virginia Banker Personal Property Left Behind Often times, the former owner of an OREO property may leave behind personal property (such as furniture and appliances). West Virginia Code § 38-1-17 sets forth a procedure for dealing with such personal property. This statute provides that following a foreclosure on residential real property, the purchaser can send the former owner a notice stating that the personal property will be deemed abandoned if it is not removed from the real property before the end of the 30 th day following the postmark date of the notice. The notice must state a phone number, a mailing address, and a physical address of a person that the previous owner can contact to obtain access to the personal property. The notice shall be sent to the former owner(s) of the real property at all the ad- dress(es) to which notice of foreclosure sale was sent as set forth in the trustee’s report of sale, as well as the last known address, if different. The notice must be sent by both certified mail and regular mail. If the notice period passes and the personal prop- erty remains on the real property, then the personal property is deemed abandoned and the purchaser of the real property may dispose of the remaining personal property. Real Estate Contracts/Deeds Hopefully, a buyer will come along to acquire the OREO prop- erty soon after the sale. As a part of the closing on an OREO property, the bank should be careful to limit the warranties and representations that are made to a buyer since the bank acquired the property at a foreclosure sale. In typical real estate transac- tions, sellers will often make certain representations and war- ranties about a property and provide the buyer with a general warranty deed. However, a bank that has acquired an OREO property through a foreclosure sale should consider limiting and disclaiming warranties and representations in real estate sales agreements and using a special warranty deed so as not to expose the bank to claims down the road. This may require using a special real estate sales contract form that is different from what most realtors use. Form letters and agreements for dealing with some of the post foreclosure issues identified in this article are available upon request by emailing the authors. n Dave Thomas is a Partner in the Corporate Department. Dave’s practice focuses on banking law, bankruptcy, commer- cial transactions and commercial litigation. He assists corpo- rate clients and financial institutions in a variety of commercial matters including loan structuring, workouts, collections, bankruptcy, and regulatory compliance. He can be reached at (304) 225-1422 or via email at david.thomas@dinsmore.com . Michael R. Proctor has assisted individual and corporate clients in matters ranging from bankruptcy court litigation to shale gas production to drafting of wills and contracts. As a part of his bankruptcy and commercial debt resolution practice, Mike has handled a variety of issues including dischargeability actions, preferential transfers and commercial collections. He can be reached at (304) 225-1449 or via email at michael.proctor@dinsmore.com. The Correspondent Division of CenterState Bank employs over eighty dedicated correspondent professionals, and we manage over 605 relationships throughout the Southeastern United States. Capital Markets Services Portfolio Strategies Bond Accounting and Safekeeping BondRisk and SwapRisk Software Treasury Services  Brokered CDs  Repurchase Agreements  Federal Funds Accommodations  Derivative Instruments Asset/Liability Management Modeling and Consulting  Plansmith Bankers GPS - Call Report Model  FICast Sendero - Instrument - Level Model Bond School and Customized Educational Functions International Services Foreign Wire Transfers S.W.I.F.T. Messaging Foreign Currency and Travelers Checks Foreign Check Clearing Foreign Drafts Foreign Exchange Advisory Services Payment Solutions Cash Management  Converge (On - line Platform)  Sweep Account  Federal Funds Program 120 Club Oaks Court, Suite 150  Winston - Salem, NC 27104  336.659.7100  877.604.8282 www.csbcorrespondent.com As our customers and their communities expand and grow, CenterState Bank is committed to delivering innovative products and services that Include: