Many cities across West Virginia share a growing problem with dilapidated properties. State Sen. Ryan Weld, R-Brooke, has a plan to deal with the issue.

Weld, also the city attorney for Wellsburg, believes the state needs to better regulate land installment contracts. These contracts allow potential homeowners to purchase property through a landowner on an installment plan, similar to how a person would pay rent or a mortgage.

The primary difference here is that, by using a land contract, the homeowner doesn’t have to go through a bank to get a mortgage — they pay monthly installments directly to the owner. They also don’t have many of the protections available to those who secure a traditional loan for a home purchase, or the protections afforded to those who rent.

Weld said statewide, these types of contracts often are utilized by companies that purchase homes at delinquent tax sales. They then enter into land contracts with individuals who can’t afford the home.

“While these contracts do serve a purpose, they often are used to prey upon lower income individuals who can’t qualify for a mortgage,” he said. “These payments become so burdensome (to the second buyer) they can’t keep up with the payments.”

When that buyer defaults on their land contract, the owner finds another party for a new contract. Along the way, Weld said, the property is not maintained.

“The property then becomes so dilapidated, the person who originally bought it walks away and does nothing about it,” he said. “It becomes eventually uninhabitable, and the city is stuck with the home.”

This type of situation plays out across West Virginia, Weld said, and cities need tools to better regulate the contracts to protect both the person entering into the contract and the city that eventually will have to deal with a potential safety issue. This would be done through better inspection programs and enhanced protections.

Weld has touched on a very real problem here, and the matter will be worth keeping an eye on as it plays out during the 2022 legislative session.