Cleanup: Banks must maintain foreclosed homes

News item: A foreclosure-prevention bill headed for the governor's signature in Sacramento requires the owners of foreclosed homes -- banks and lenders -- to maintain the properties. It's not clear that such a law would be enforced (who inspects foreclosed homes?), but this is a start. From today's L.A. Times: The bill "...authorizes local governments to force lenders to maintain property that is sitting empty after a foreclosure.

The headline on the bill -- passed by the Senate and awaiting the governor's signature -- is that it requires earlier notice to homeowners at risk of default: "The legislation, which passed on a 32-8 vote, would require lenders to give homeowners more -- and earlier -- warnings that their home loans were heading toward default."

Presumably, earlier warnings will give homeowners a better chance of working with their lender, or lenders -- remember, many have more than one loan -- to restructure their mortgages.  Related news item: Loan workouts under the government-brokered Hope Now program actually decreased in May: "U.S. mortgage servicing companies helped 170,000 homeowners modify loans or set repayment plans to avert foreclosure in May, a 7% decrease from the previous month, according to an industry survey."

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[shockg]

ShockG,

Here's the plan to further our agenda. You and I scare these bloggers into buying a house. We tell them to ignore foreclosure data because it's fictitious. Sound good? =)

Posted by: pugtv | July 03, 2008 at 09:03 AM "

I have a better Idea. Let potential buyers make their own informed decisions. Nothing you say here will help your cause.

It's not our problem you decided to short the market by selling your primary residence. You will be lucky if you buy back in at a 15-20% discount after throwing your money away to rent for the last 3-4 years. We all know the real cause of your anger and frustration is that the better areas will never experience the severe price reductions you hoped for back in 05 when you sold. Talk to Laker and many of the others here who made the same mistake. You guys will be lucky to break even and you know it.

[image009]

ShockG - Why don't you want the prices to go down in the nicer neighborhoods?

[fostercatmom]

At least CA's trying to do something, would like to see something done here in the Vegas Valley. The blight is everywhere. But good luck enforcing maintenance standards when no one will claim true ownership. If my bushes grow a few inches over the sidewalk, I'm fined. If I want to put flowers around my front yard tree, I need written permission. Yet the foreclosed house around the corner is sporting a dead tree out front, long-since dead grass, and dead shrubs that are a fire hazard. And the associations seem powerless. The question is why.

That's disgusting if indeed lenders are going through the foreclosure process and then holding off on finalizing to avoid taking responsibility. And the lawns are the least of the problems. Often, pets are being left behind, IN the houses, as temperatures soar past 110. No one's accountable. Incessantly barking dogs take on new meaning and concern. --fcm
http://mrsmomkit.blogspot.com/

[Andrea Foster]

I read this article recently in Forbes: http://www.forbes.com/forbes/2008/0721/058.html

It is interesting because these are the same people who helped me modify my loans a year ago. I highly recommend loanmod.com to any homeowner facing foreclosure. They saved my home and my dignity.

[thecanary]

It is not hard to enforce at all. Some cities already have local ordinances that are enforced by the police department. Essentially, they notify the lender of their obligation, if they don't clean up the property, they are fined, and fined, and fined, until they do. These fines and administrative costs are attached as a lien to the property and the city gets it when it sells. It works.

[Lisa]

Hello,

What do I need to start my own business--cleaning out forclosed homes? What types of forms/contracts would I need? Do I need to carry inurance? Be bonded? how do I get started? Whats the cheapest easiest way?