Bank of America sues city of Holland over house

8:07 PM, Feb 3, 2012   |    comments
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Foreclosed home on S. River Street, Holland, at center of Bank of America suit against the city.

HOLLAND, Mich. (WZZM) --  We've learned the city of Holland is being sued by one of the biggest banks in the nation.

Bank of America has filed a lawsuit to prevent the city from demolishing a foreclosed bank-owned house on South River Avenue.

The home is not the prettiest thing on South River Avenue, according to people in the neighborhood..

"It looks like a disaster right now," says Wilhelm Garbutt.

Neighbors have already made their decision about the house, and so did Holland city officials.  They gave the home's owner an ultimatum.

"We said on Monday we're sending out those bids," says Cindy Osman, assistant director of Holland community and neighborhood services. 

Those are bids to move forward with demolishing the house - which is now owned by Bank of America.

"Bank of America foreclosed on the property," says Osman. "We saw it start to deteriorate."

Bank of America responded to the city's order with a lawsuit.

"They filed a lawsuit because they don't want us to tear it down," says Osman.

In the lawsuit, Bank of America denies charges from the city that the house is dangerous.  The bank also claims it spent $10,000 to fix the house - including repairs to the roof. 

But city officials say the repairs didn't go far enough.

"For some reason they feel they've resolved all the violations, but one good look tells you its not finished," says Osman.

When WZZM 13 News called the attorneys for Bank of America, we were redirected to a media hotline.  We have yet to hear back. 

Despite the lawsuit, city leaders say they will continue the process of selecting a demolition contractor next week.

"We'd rather see it stay up, but it really needs some work to be done," says neighbor Cherie Decook.

The city says it went through all of the proper procedures for demolition according to state statute.  Those include hearings, notices, and waiting the required amount of time. 

Demolition is expected to begin in a month or so -- after a contractor is chosen.

Reported by Alex Shabad in Holland