Wyncote Residents Put Squeeze On Bank Owner Of Blighted Property, Demand Repairs

By Cherri Gregg

WYNCOTE, Pa., (CBS) -- Residents in the Wyncote Community are using every method possible to get the attention of the bank that owns a piece of blighted, foreclosed property.  They've called the township, filed a lawsuit and written letters. Now they've put up a sign.

"The Bank of New York Mellon NOT A GOOD NEIGHBOR!"-- in white letters on a red background greets those who drive down past Cheltenham High School on Rices Mill Road.

"This property is deplorable," says David Wolfe, spokesman for the Wyncote Community Coalition who lives next door to the property located at 422 and 430 Rices Mill Road.

The two parcels have spent more than a decade in foreclosure litigation with the bank finally taking possession in the Fall of 2014.  Wolfe says he and dozens of neighbors then began requesting that the bank make repairs and maintain the property.  They called Cheltenham Township, their local elected officials and signed petitions.

"This property is basically falling down," says Wolfe, "there is a seriously profound mold smell coming from this home -- we could barely use our yard."

The township filed a suit against The Bank of New York Mellon last May in the Court of Common Pleas of Montgomery County. In July, a judge ordered the bank to make nearly a dozen repairs, including the removal of dead trees, repair of broken windows, erection of a fence, razing of structures and more.

"The sidewalk has not been maintained," says Wolfe, noting that Cheltenham High School and Wyncote Elementary School kids walk by the property every day. "The kids are forced to walk in the street-- it's very dangerous."

Wolfe says representatives from a maintenance company came by and made some of the repairs, like putting up chicken wire around a pool on the property.  But the Bank has since appealed the court order and ceased making additional repairs.  So the WCC is mounting more pressure.

"It's a blight on the entire neighborhood," says State Senator Art Haywood, who lives across the street from the property.  "Bank of New York Mellon should be ashamed of themselves-- we believe in maintaining our neighborhood and we will continue to apply pressure."

While the BNY Mellon owns the property and is listed as the defendant in the lawsuit, it is the trustee.  The property is serviced by Ocwen Loan Services. Bank spokesman Michael Dunn wrote in an email:

"As trustee, we have no powers or duties with respect to the maintenance , foreclosure, sale or disposition of properties.  Those powers and duties fall exclusively to the servicer."

Ocwen Loan Services spokesman John Lovallo says they believe in keeping the community safe, but this is a complicated situation. He issued the following statement on behalf of Ocwen:

"This property was the subject of protracted litigation between the Mortgagee and the former owner, during which time it fell into disrepair.  Unfortunately, work on this foreclosed property could not start until a formal deed of transfer was recorded and the home was vacant. Nevertheless, we agreed with Cheltenham Township to make certain repairs immediately while the appeal was pending in the Commonwealth Court. Those repairs were made shortly after the agreement was reached in September 2015. Once the Commonwealth Court rules on the continuing appeal, we will work in the quickest possible manner to address any remaining concerns left open by the Court."

Joseph Bagley, Esq., Solicitor of Cheltenham Township issued the following statement on behalf of the Cheltenham Township community and the neighbors on Rices Mill Road:

"The Township has steadfastly pursued the Bank of New York Mellon-- in three different courts-- to compel the Bank to comply with the Township Property Maintenance Code.  The Bank has been fined $3,000 by one Court, while another Court has ordered compliance with Township Codes by an injunction entered July 14, 2015. However, the Bank has done virtually everything in its power to delay implementation of the Court Order.  For example, the Bank has recently sought a delay of the deadline for having to file a brief with the Court on the appeal taken by the Bank.  Please see the attached order from the appeal of the July 14, 2015 Preliminary Injunction.  Those few maintenance issues which have been reluctantly addressed by the Bank have only been agreed to in order to avoid the imposition of additional fines or to put the Bank in a better light with the Court.  The  Township only agreed to withdraw a few citations in exchange for the Bank addressing the most pressing safety issues facing the community, including proper abandonment of a swimming pool which as a result of neglect had become an overgrown, stagnant and unfenced pond when the litigation commenced.  The Township is in the process of issuing additional citations against the Bank and has recently sent correspondence to the Bank President imploring the Bank to address the serious property maintenance issues posing a threat to public health, safety and welfare. "

In the meantime, Wolfe says WCC will continue to push for resolution.

"It enrages our community that an institution of this stature would endanger our children," he says, "it's just not acceptable."