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House Sold Out From Under Owner For $500

City Sells Man's House For $500, Claims It Was Mistake

POSTED: 9:26 am EDT July 29, 2008

A Baltimore man who claims a clerical error is the reason his home was sold out from under him for just $500 said it all could have been prevented.

In east Baltimore, Jim Urbanski made the investment in 2006 and turned a shell of a house into a liveable home. But he got something he didn't bargain for: After renovating the house and renting it out, Baltimore city sold it, reported WBAL-TV.

"I purchased the house for $45,000. It was sold for $497 at a tax sale," Urbanski said.

To lose a fully renovated house in February for $497 was outrageous, he said.

A law firm purchased the property and tacked on another $2,000 for attorneys' fees, but Urbanski didn't even know the home had been sold until a few weeks ago when the law firm sent him a letter, claiming it was foreclosing on the house.

"I was in shock. I'd made my mortgage payments, taxes ... I couldn't figure out why the city would sell my property at a tax sale," Urbanski said.

To regain ownership, he said he made 20 calls to the city and more than a dozen to the law firm.

"The amount of time and frustration -- I can't even quantify. One phone call after another, and it all hinges on the city," he said.

Urbanski purchased the home in September 2006. The deed transfer happened in November 2006, but according to a city spokesman, the paperwork never got to the Department of Public Works.

A month after Urbanski bought the house, the city sent bills for boarding up and cleaning the vacant property to the old address of a previous owner. Second notices were sent to the same place, and so were the final notices.

The city called the issue an unusual case and an obvious mistake, claiming the tax sale was being voided. Urbanski is waiting for the paperwork to prove it.

"It's been an experience. I wouldn't want to do it again," he said.

Urbanski said it was a major headache and that he's glad it's getting resolved.

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