Published: May 08, 2009 01:12 am      

CITY OF LOCKPORT: Officials say 407 South St. probably will be demolished

The run-down house at 407 South St. probably will be demolished, city officials said Thursday.

Until it actually is taken down or fixed up, however, the land trust that owned it previously remains on the hook for code violations.

Stephen Walsh, trustee of 407 South St. Residential Land Trust, remains in housing court even though the trust no longer owns the property. It’s owned by Oklahoma-based Midfirst Bank since a foreclosure auction last month.

The house was condemned by a building inspector in April 2008 after inspection showed serious defects including a hole-pocked roof, drywall falling off ceilings and water damage to structural supports. Walsh’s trust had acquired the title a few months earlier, with the damage already done, from a couple who couldn’t afford to pay the mortgage any more; the trust hoped to persuade the bank to discount the mortgage so Walsh could line up investors for rehabilitation, but it didn’t happen.

Since July 2008, Walsh has been under orders to continue appearing in court to answer for the house’s condition, even though the trust owned it only briefly and the bank is now clearly the owner.

Judge Thomas DiMillo suggested Thursday that continued prosecution of the trust “doesn’t make sense any more,” but prosecutor Matt Brooks resisted the notion of dropping it.

“The fact is, when this case was lodged, the trust owned the property,” he said. “If we see action (at the property) then I will recommend a discharge. If not, I have no intention of letting it fall by the wayside,” he said. “When this case is dismissed, I want to know the property is being repaired or demolished.”

Since he’s encouraged that Midfirst Bank appears prepared to deal with the property, though, Brooks consented to a lengthier adjournment in the trust case. Walsh now isn’t due back in court until June 18.

According to Brooks, Midfirst Bank recently hired Safeguard Properties, a company that works with banks on property maintenance issues, to recommend a course of action at 407 South St. The recommendation is for demolition, he said, but no requests have been made for a demolition permit from the city yet. The last he heard, Safeguard was waiting for final approval from the bank.

Contact reporter Joyce Miles at 439-9222, ext. 6245.