Safeguard Properties

Letter: State Legislation Needed to Expedite Foreclosure

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Industry Update
October 26, 2015

State legislation needed to expedite foreclosure

The New York Bankers Association has long supported measures to improve New York’s foreclosure process, which is one of the longest in the nation. At the beginning of the crisis, New York State had one of the lowest foreclosure rates in the country. Now it ranks near the top. That is because of the length of time it takes a property to go through New York’s court-mandated foreclosure process. In fact, it now takes an average of more than three years for a lender to foreclose on a property. In most other states, the process concludes much faster.

Until a judgment of foreclosure is rendered by the court, the bank does not own the property. Nor is it receiving payments from the homeowners, even as the bank continues to pay the taxes on these properties. A bank would not risk the reputational or economic harm it would suffer by overtly neglecting a property it owned.

In the cases of vacant and abandoned properties, homes fall into disrepair during the lengthy foreclosure process. We believe that accelerating the process for these vacant properties will cut down on the amount of time they sit in disrepair, and will speed up their return to the market to be sold to a new family. We believe this is the best solution for our communities, and we support legislation to expedite the process.

Michael P. Smith

President & CEO

New York Bankers Association

Source: The Buffalo News

Law Will Help Cities Prevent Blight

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Industry Update
October 16, 2015

Imagine an abandoned building in your neighborhood.

It could be an apartment building, or a single-family home. The lawn grows more unruly every day. Pipes freeze in the winter and later burst. The unmaintained roof springs a leak, causing water damage and mold.

Maybe squatters take up residence, while vandals steal every ounce of copper from the building’s boiler and electrical system. Graffiti appears on the walls. Vandals may break a few windows or trash the backyard, just because they can.

How did this building get this way? Sometimes, a family is forced to make the heartbreaking decision to walk away from a home they can no longer afford. Other times, an absentee landlord has ignored the property for years.

Sooner or later, a bank takes over the building.

In the best-case scenario, it’s a local bank or credit union. These institutions, invested in the community, have an interest in offloading the property. So they maintain it with an eye for sale. Maybe a new family moves in, and a building that could easily have blighted the neighborhood is lived in again.

Unfortunately, though, the situation is not always so ideal. Often, when a property is abandoned and months go by without any care or attention, it’s a large, multi-national bank without an in-state presence holding the mortgage. With no interest in the local community, and a portfolio of similar properties all over the country, the building is quickly forgotten — driving down nearby real estate values and creating a public safety risk.

In the end, it’s often the municipal government — and its property taxpayers — that are left picking up the tab when it finally demolishes the property altogether.

In the past four years, property taxpayers in Lewiston have spent nearly $1.5 million demolishing 58 derelict buildings left vacant by former owners and the financial institutions holding the mortgages. At least a few of the arsons that grabbed headlines in our city a few years ago involved abandoned properties.

The problem of abandoned buildings affects most Maine cities. Just last month, the Bangor Daily News wrote about Shannon Denbow, a resident in that city who “fears letting her children play in her own yard” because a nearby abandoned residence attracts drug dealers. Denbow said she once called the police because she heard people at the property “arguing about whether to start a fire.”

Situations like this are why I wrote and passed legislation this year to enable cities and towns to take back control by addressing the detrimental effects of abandoned properties in ways that were impossible before. The bill was passed into law by the Legislature and will take effect on Oct. 15. Here’s what it does:

First, the law will allow, but not require, municipalities to provide for the care, maintenance and security of abandoned properties before those buildings become a danger to safety and surrounding property values. The law lets towns and cities hold parties with an interest in the abandoned property, including large, out-of-state banks, responsible for potential blight or safety hazards.

If responsible parties don’t take care of the buildings, the law allows the municipality to address the problems themselves. The law also allows the municipality to recover the cost of maintenance from the responsible parties, so the taxpayer is no longer on the hook for a big bank’s negligence.

The law also requires financial institutions that foreclose on a home or apartment building to designate an in-state representative who will be legally responsible for the care, maintenance and security of the property. This means no more frantic, unreturned calls from town officials to out-of-state financial institutions.

By enabling our towns and cities to take control, abandoned properties will be less likely to fall into total disrepair over a period of years, becoming magnets for thieves and other criminals. Instead, they’ll be more likely to be purchased by a redeveloper or a new family who will move in and become responsible property owner.

Commonsense legislation like this empowers local officials to fight blight, keep our communities safe, preserve the good character of our neighborhoods and protect surrounding property values.

Nate Libby is Lewiston’s state Senator and a two-term Lewiston City Councilor.

Source: Sun Journal

Foreclosure Data Has Significantly Improved From Crisis Peak Five Years Ago

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Industry Update
October 21, 2015

The current data for foreclosures and mortgage delinquencies shows significant improvement compared to data from five years ago, the universally accepted peak of the mortgage crisis, according to HOPE NOW, a private sector alliance of mortgage servicers, investors, mortgage insurers, and non-profit counselors.

HOPE NOW’s data for August 2015, released on Wednesday, shows foreclosure sales of 27,000 for the month, their lowest level since the organization began collecting data in 2007. August 2015’s total of foreclosure sales was approximately one quarter of the total reported for August 2010, which was 100,000.

Also in August 2015, there were 56,000 foreclosure starts, a 77 percent decline from August 2010’s total of 241,000. Mortgages 60 days or more delinquent totaled 1.69 million for August 2015, a 47 percent dropoff from the same month five years earlier (3.16 million).

“The best news from our data is that the overall health of the housing market has seen significant improvement from five years ago,” said Eric Selk, Executive Director of HOPE NOW. “Foreclosure and delinquency metrics are seeing a decrease of double digits. This points to a recovery of the market as mortgage delinquency is returning to normal levels.”

Non-foreclosure solutions, which include a combination of loan modifications, deeds-in-lieu of foreclosure, short sales, or other workout plans, totaled 118,000 in August 2015, which was more than four times the number of foreclosure sales (27,000) completed during the month. Approximately 33,000 of those non-foreclosure solutions were permanent loan modifications, which include both proprietary programs and the government’s Home Affordable Modification Program (HAMP). Approximately 23,000 of the loan mods were completed through proprietary programs and about 9,500 were completed through HAMP.

“Total industry solutions continue to track favorably with foreclosure sales, which indicate progress in the recovery of the overall housing market,” Selk said. “Although there is good news, on a nationwide level, with respect to foreclosures and serious mortgage delinquencies, HOPE NOW’s members remained focused on specific markets that need additional support. These markets have been slower to recover and face a variety of housing issues. Also, we are starting to see the results of more ‘upstream’ solutions being brought to the market. If struggling families are being offered solutions quicker, the recovery rate will naturally happen quicker. Our members are not only focused on offering viable solutions for at-risk borrowers, but fulfilling quicker results at the time of delinquency.”

Source: DS News

Florida Lags in Disbursing Foreclosure Aid Federal Report Says

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Industry Update
October 6, 2015

Florida, long ranked as the top state for foreclosures, has the country’s worst rate of disbursing $1 billion in federal foreclosure-relief funds, according to a new report by a federal enforcement agency.

Five years into a foreclosure-relief program known as the Hardest Hit Fund, a lack of oversight by the U.S. Treasury Department has allowed Florida to deny more applicants and disburse a lower percentage of funds than other states, according to the Special Inspector General for the Troubled Asset Relief Program.

“Florida has the lowest homeowner admission rate of any Hardest Hit Fund state, one of the highest withdrawn application rates, and has consistently denied homeowners at higher rates than the national average,” reads the findings released Tuesday.

For years, homeowners throughout Central Florida have voiced frustrations about trying to apply for the money, starting with a computer crash the day Florida rolled out its mortgage principal-reduction program in 2013 — a time when the real estate market had started recovering from the crash that started in 2007.

The Treasury Department responded to the findings by noting that no one found any fraud, waste or abuse in terms of spending the money. In addition, Florida has shown “significant progress” assisting homeowners in recent years and even pioneered new ways of distributing the funds to qualified applicants. It crafted new reverse-mortgage programs for seniors, new down-payment assistance programs for buyers and other programs, officials said.

The special inspector’s office, though, criticized the Treasury for failing to set spending targets and goals that would have forced Florida to deliver assistance earlier on in the economic downturn.

“Hardest Hit Fund Florida was slow in getting assistance to homeowners and lacked effectiveness during the first years of the program, which was the height of the crisis, when Florida homeowners needed it most,” the report stated.

The Florida Housing Finance Corp. delayed a February 2010 launch of the program when newly elected Gov. Rick Scott asked that the assistance be cut from a proposed $35,000 over 18 months to just $12,000 over six months. At the time, the chairman of the state’s housing agency raised concerns that six months of assistance wasn’t enough to help struggling homeowners with reduced wages.

Report findings included:

  • Despite Florida’s unemployment rate of 11.8 percent in early 2010, “unemployed homeowners would have to wait more than one year before the statewide rollout of Hardest Hit Fund unemployment assistance.”
  • For the first three years of the Hardest Hit Fund, Florida had nothing tailored to underwater homeowners, even though about half of homeowners were underwater after prices had begun to collapse in 2007.
  • For the first 21/2 years of the program, nearly half of Floridians applying for the assistance were deemed ineligible.

Since the program started in 2010, Florida has spent $520.6 million. Of that, $411.8 million was spent during the last two years. About 23,234 Floridians have qualified for assistance from the program.

Florida improved its programs after Treasury officials “pressured” them to do so and helped get mortgage servicers on board to cooperate with the mortgage-relief programs, the report stated.

The Florida Housing Finance Corporation, which manages the Hardest Hit fund, stated that Florida is second only to California in terms of total dollars disbursed. Florida is also second only to California in the allocations of Hardest Hit Funds.

Florida has a handful of programs to address housing issues that include: delinquent borrowers who have struggled due to unemployment, underemployment, divorce, or family death; underwater homeowners; senior homeowners struggling with reverse mortgages; and credit-qualified first-time homebuyers.

Source: Orlando Sentinel

City Collects Bonds on Vacant Properties

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Industry Update
October 5, 2015

WARREN – The city has collected an estimated $610,000 in bonds and another $12,950 in registration fees from banks and other mortgage holders that have local properties in foreclosure.

The bonds and registration fees are being collected as a result of a 2013 law passed by city council that requires companies filing foreclosures to pay registration fees of $100 for each vacant property and a $10,000 bond.

There have been 129 residential properties registered at $100 and one at $50, according to David Griffing, city auditor. There have been 61 bonds paid at $10,000 each.

The goal of the program has been to encourage owners of vacant properties in foreclosure to maintain them, according to Councilman Eddie Colbert, D-7th Ward. Maintenance of the properties includes basic landscaping, making sure all of the doors and windows are secured, and making necessary repairs.

“My goal in introducing this legislation was to prevent properties from falling into disrepair, lowering their value and the value of properties around them,” said Colbert, who pushed to get the law passed. “We are trying to save neighborhoods.”

Safety Service Director Enzo Cantalamessa said the city’s program is working because it has a good working relationship with the Trumbull County Clerk of Courts.

“Whenever a new foreclosure is filed, we are notified,” Cantalamessa said. “I notify the health department, which identifies whether the property is vacant or occupied.”

The property owner and/or the company holding the mortgage is contacted and informed about the law.

While the city has collected hundreds of thousands of dollars in bonds, Deputy Health Commissioner Bob Pinti said it has not been forced to use any of the bond money to make repairs or to do lawn maintenance.

“Banks and other lending institutions, especially the national ones, have been very responsive and responsible,” Pinti said. “The national companies are more accustomed to this type of law than are local banks.”

Companies like U.S. Bank, PNC, Bank of America and others have not had to be coaxed to follow the law.

“They have representatives to check local ordinances and laws,” he said. “If we contact them, they’ve generally been apologetic.

“Most of these financial institutions contract with property preservation companies to safeguard their properties. Decals are placed on houses where people can see them and call if problems are identified.”

Generally, the companies have been quick to do whatever is necessary to make repairs or take care of maintenance issues, he said.

“They would rather have their contracted companies do the upkeep, than force the city to become involved,” Pinti said. “If the city does it, we may not get the most cost efficient contractor or, if one of our workers does the grass cutting, the costs may be higher than it costs them to have the work done.”

Pinti said there has be a marked improvement in care of foreclosed properties since council passed the legislation.

“The registration of the properties has given us specific people to contact if there are problems,” Pinti said. “We did not have that prior to the passage of this law.”

The health department is working on amendments to recommend to council to strengthen the law and to close possible loopholes discovered during the law’s implementation.

Warren Mayor Doug Franklin said the program is showing signs of effectiveness.

“It has been a good program,” he said.

Matt Martin, executive director of Trumbull Neighborhood Partnership, said he is pleased to hear Warren has been able to collect on some bonds because of the 2013 legislation.

Youngstown passed similar legislation in 2013.

“As I understand it, Youngstown has collected more than $2 million in bonds through its program,” Martin said.

There are more than 500 Trumbull County homes in some phase of foreclosure, Martin said.

“I am not aware which are the ones that have been registered,” he said. “I think that for tools like the foreclosure bond to be the most effective, they need to be used in tandem with other tools like targeted code enforcement, strategic demolition and blight remediation, and land banking.”

Martin would like to see the creation of a vacant properties task force that would allow the city, the county landbank, TNP and other interested organizations to share information and resources to address the problem of vacant foreclosed properties in a coordinated fashion.

“What is lacking is a streamlined approach in vacant property management,” he said.

Source: TribTODAY.com

Vacant Properties Part of City Blight Equation

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Land Bank Update
September 12, 2015

A handful of fires across St. Joseph in recent months has highlighted a contributing factor to the city’s issues with blight: vacant buildings.

Steve Hofferber, property maintenance manager for the city, said there’s no one entity that tracks the number of vacant properties in the city. He added that the properties in themselves are not illegal.

“A building being vacant by itself is not a code violation,” he said. “There are hundreds, maybe thousands of buildings at any given point in time that are vacant. People move out, they might be going through foreclosure. A business might close and sometimes it takes years for another business to move in there.”

He said when a building’s exterior or the building itself becomes a code violation, that’s when the city can get involved. Most commonly, the city responds to unsecured vacant buildings.

“The city at that point would try to contact the owner and give them the opportunity to secure it,” he said. “If they don’t, then we would go in and secure it and bill the property owner.”

Issues of trespassing or other crimes taking place in vacant buildings are under the purview of the Police Department, but the city may follow up to secure the building if that’s the issue.

He said the time it takes to remedy problem properties can be extended by the lengthy process of finding out who owns a property, as well as the process to notice and for the city to abate the property or levy administrative penalties.

Mr. Hofferber said the problem of a surplus of vacant properties is not uncommon for older cities like St. Joseph.

“In our case, we have a housing stock that probably exceeds the number of people we have in town,” he said. “Other cities, maybe younger or growing cities, may not have that problem, but we do.”

He added when it comes to these properties, it’s important for the public to realize that they’re privately owned, in many cases.

“There are expectations that people maintain them according to code, so in addition to being unsecured, we run into problems where they don’t have protective treatment, the gutters are falling off, the roofs have issues,” he said. “We can’t demolish a building just for those reasons, but we can send a notice to the property owner. If they don’t comply, we can issue them citations to Municipal Court or administrative penalties and try to get them to comply that way.”

Land bank legislation

The question of how to solve the issue led state Rep. Delus Johnson, R-St. Joseph, to introduce a bill in the prior legislative session that would establish a land bank agency in St. Joseph.

The law was modeled off of a similar program in Kansas City. It would allow the agency to handle the management, sale, transfer and other disposition of interests in real estate. The purpose of a land bank would be “to foster the public purpose of returning land, including land that is in a nonrevenue-generating, nontax-producing status to use in private ownership,” according to the legislation, House Bill 652.

It ultimately was referred to the Economic Development and Business Attraction and Retention committee and did not proceed out of committee. Mr. Johnson said after submitting the bill, he learned there were similar programs existing in local government and said he would not further pursue the issue.

Ron Martin, Buchanan County’s trustee of county deeds, said the county doesn’t have a land bank, but he works to sell properties that remain unsold following the annual tax sale. Properties are placed on the tax sale list after a property owner fails to pay property taxes for two consecutive years.

Each year, the unsold properties are placed into a trust. Mr. Martin said this year, there were 47 houses and 60 vacant lots went unsold.

‘A land bank can only do so much’

The Center for Community Progress, a Washington, D.C.-based organization, is focused on turning vacant, abandoned and problem properties into vibrant places. The group provides education, research, policy development and technical assistance to communities across the country and has expertise in the area of land banks.

When it comes to tackling the issue of vacant buildings, Kim Graziani, the center’s vice president and director of technical assistance, said there’s no one-size-fits-all fix, but cities that address them well typically have systems in place to handle them proactively.

She said those systems allow city officials to identify who owns the vacant properties, how long they’ve been vacant, if there have been any code enforcement actions on the property, if there have been any fire or police response to a property, and if a property’s owners have been delinquent on taxes.

“In our experience, tax delinquency is almost always the first red flag,” she said. “(Properties) slowly become substandard and eventually vacant. Usually our first point is to figure out whether (owners are) current on taxes.”

She said land banks can stabilize properties and give communities more flexibility on maintaining and transferring properties. They also can allow greater patience in terms of holding properties to match them with the right new and responsible owners.

“A land bank is a great tool, but if you don’t have all these other systems that are identifying and preventing properties from going into decline, then a land bank can only do so much,” she said. “You kind of have to tackle it from the front.”

Ms. Graziani said cities need a combination of transparent, proactive leaders, good property owners, government and nonprofit partnerships and different city departments working together.

“Those kind of things are very consistent regardless of the specifics,” she said.

Source: St. Joseph News-Press

Notice Requirements for Protection of Tenants in Foreclosure Actions

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Industry Update
September 15, 2015

Session Law 2015-178

The Federal “Protecting Tenants in Foreclosure Act of 2009” expired on December 31, 2014.

The North Carolina General Assembly has adopted Session Law 2015-178 which reinstates many of the same protections for tenants as the previous Federal Law.

Expanded benefits for tenants are included in the new legislation.

1. The legislation includes the following requirement for providing Notice of Foreclosure Sale to a Tenant:

If the property is residential and contains less than 15 rental units, including single-family residential real property, a copy of the Notice of Sale shall be mailed to any person who occupies the property pursuant to a residential rental agreement, by name, if known, or to occupant.  The notice should be mailed at least 20 days prior to the date of the foreclosure sale.

The Notice of Foreclosure Sale of residential real property with less than 15 rental units shall including the following:

Any person who occupies the property pursuant to a rental agreement entered into or renewed on or after October 1, 2007, may, after receiving the notice of sale, terminate the rental agreement by providing written notice of termination to the landlord, to be effective on a date stated in the notice that is at least 10 days, but no more than 90 days, after the sale date contained in the notice of sale, provided that the mortgagor has not cured the default at the time the tenant provides the notice of termination.  The notice shall also state that upon termination of a rental agreement, the tenant is liable for rent due under the rental agreement prorated to the effective date of termination.

2. The legislation also addresses the requirement for Notice to the Tenant to Vacate.
 
If the purchaser at foreclosure will not occupy the property as a primary residence, the purchaser shall assume title subject to the rights of any tenant to occupy the premises until the end of the remaining term of the lease or 1 calendar year from the date the purchaser acquires title, whichever is shorter. In no event shall the purchaser be required to renew an existing lease. 

This requirement applies to a Lease which meets the following requirements:

(1) The Tenant is not the Debtor under the Security Instrument foreclosed or the child, spouse or parent of the Debtor.

(2) The Lease is in writing, not terminable at will, and requires the receipt of rent that is not substantially less than fair market rent.

If the purchaser at foreclosure will occupy the property as a primary residence purchaser must provide any tenant at least 90 days notice to vacate before making an application for possession of the property.  This provision is also applicable to a tenant that has an oral lease or a lease terminable at will.

Purchaser means any purchaser or successor in interest who has acquired title to a single-family residential unit pursuant to a foreclosure sale under power of sale.

This legislation becomes effective October 1, 2015.

Source: Poyner Spruill LLP

Nevada Supreme Court Allows Pursuit of Deficiency Judgments Following Out-of-State Non-Judicial Foreclosure Sales

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Industry Update
September 15, 2015

In its opinion in Branch Bank and Trust Company v. Windhaven & Tollway, LLC et al, 347 P.3d 1038 (Nev. 2015), the Nevada Supreme Court reversed the lower court and held that a creditor who non-judicially forecloses on real property in another state may sue in Nevada to recover a deficiency judgment, even though the foreclosure sale was conducted pursuant to the laws of the state where the property is located instead of pursuant to NRS 107.080.  In the case before the court, Branch Banking and Trust foreclosed on real property in the State of Texas pursuant to that state’s nonjudicial foreclosure statutes.  The sale yielded a lesser amount than owed on the note secured by the property, and the bank brought an action in Nevada for a deficiency judgment.  The district court granted summary judgment in favor of the defendants, ruling that NRS 40.455(1) requires as a condition precedent that the sale be conducted pursuant to NFS 107.080.  The bank appealed and the Nevada Supreme Court reversed.

The court’s decision was based on a close reading of the statutory language at issue.  NRS 40.455(1) provides in pertinent part:

[U]pon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee’s sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff’s return or the recital of consideration in the trustee’s deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.  (emphasis added).

The court began its analysis with the observation that “statutory interpretation is a question of law, which this court reviews de novo. (citatiosn omitted).  In interpreting a statute, this court looks to the plain language of the statute and, if that language is clear, this court does not go beyond it. (citations omitted). Each section of a statute should be construed to be in harmony with the statute as a whole.”  Further, the court noted that a statute does not modify common law unless an intent to do so is explicitly stated.

In addressing the question of whether NRS 40.455 precludes or allows deficiency judgments where foreclosure was through a nonjudicial foreclosure in another state, the court specifically analyzed the use of the word “respectively” in the statute.  The court relied on accepted use of the word “respectively” to “pair words or phrases in the correct order.”  Doing so, the court concluded that the use of the word “respectively” in NRS 40.455(1) paired “foreclosure sale” with “judgment creditor” and “trustee’s sale held pursuant to NRS 107.080” with “beneficiary of the deed of trust.”  Using this construction, the court agreed with the bank that the term “foreclosure sale” in the statute refers only to judicial foreclosure.

In addition, the court concluded that, because NRS 40.455(1) contains no language limiting the right to a deficiency judgment following an out-of-state nonjudicial foreclosure sale held in another state.  Looking to NRS 40.430, the court determined that the statutory scheme contemplates that a party may foreclose on out of state property nonjudically and still bring an action in Nevada for a deficiency judgment.  Further, the court noted that NRS 40.455(1) is a statute that derogates from the common law and thus must be construed narrowly in favor of allowing creditors to pursue deficiency judgments.  Because the statute is designed to achieve fairness to all parties to a transaction secured by real property, the court held that interpreting NRS 40.455(1) to preclude deficiency judgments to creditors who nonjudically foreclose on out-of-state property pursuant to another state’s law would undermine the purpose of the statute.

Source: The National Law Review

County Supervisors Want to Put Squeeze on Squatters

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Industry Update
September 1, 2015

BAKERSFIELD, Calif. (KBAK/KBFX) – Kern County has an ordinance that deals with squatters living in foreclosed property, but now county leaders want more rules aimed at this problem.

Supervisor Mike Maggard worries some situations may fall through the cracks of the current ordinance, and the board wants to see if there could be more tools.

Maggard had been approached by a neighbor who says there are people living in a house that’s been abandoned, but it’s apparently not officially in foreclosure. Chris Gonzales tells Eyewitness News he sees plenty of debris and items stacked up in the yard and next to the house, and nearby neighbors worry about illegal activity. He thinks the property’s in some kind of “limbo,” and that’s why the county hasn’t been able to act on his concerns.

In January 2014, Kern County enacted the Abandoned Property Ordinance, which requires mortgage companies to register properties they’ve foreclosed on and properties where they’ve been informed the owners no longer have an interest. County officials say there are now 383 properties on their list.

The mortgage companies are also required to post each vacant property with contact information for reporting any problems. The lenders are required to maintain the vacant properties, and inspect them once a month. Code enforcement officers say that process seems to be working well.

But, Maggard said the goal was a policy to help neighbors have tools to keep their areas safe, and he wants to look for more ways to deal with vacant properties that don’t end up on the registration list.

The board voted Tuesday to have county lawyers and code enforcement officials look for more solutions.

County Engineering Department Director Greg Fenton said they’ll tackle that, and he’s encouraged by the progress they’ve seen already working with the mortgage companies on this issue.

“Lately they’ve been very responsive, and they’ve been very cooperative, and we don’t have any issues with the lenders now,” Fenton told Eyewitness News. “As for those occupied by squatters, then that’s where it gets a little trickier to deal with the people aspect of violations. And, that’s where we need to do some more homework to see what we can implement.”

Maggard also wants to see if there could be more tools for law enforcement to check whether a suspected squatter has a legitimate rental agreement, or a fake. Fenton said they’ll work with the sheriff’s department on that.

County officials say so far, when complaints come in they try to verify the owner of a property, and inspect to see if there are any code violations. If they find the site does is not abandoned as defined in the current ordinance, and they don’t find other violations, then no action is taken.

As a concerned neighbor, Gonzales says that could leave squatters living in a house where ownership is “in limbo.” He hopes some rule changes can solve that, and said he’s encouraged by Tuesday’s action by the board.

Source: BAKERSFIELDnow.com

Assemblyman Introduces Foreclosure Relief

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Industry Update
September 16, 2015

Brian Curran says bureaucratic red-tape is causing foreclosure threats

Assemblyman Brian Curran (Lynbrook-21st A.D.) announced last week that he has introduced legislation to provide eligible homeowners in areas of New York State affected by Hurricane Sandy with more time to receive their entitled funds during foreclosure proceedings.

Curran initiated this legislation, he said, because the Federal Emergency Management Agency (FEMA) and NY Rising, a reconstruction program for victims of Hurricane Irene and Sandy, have taken too long to provide initial, necessary or adequate awards to homeowners looking to rebuild their homes.

“We are approaching the three-year anniversary of Superstorm Sandy and we still have families, some with vacant properties, who are being foreclosed on,” said Curran. “If these families received the necessary and adequate funds for rebuilding their homes in the first place, their properties wouldn’t be foreclosed on. Our homeowners simply need more time to appeal the original receipt of funds in the event, especially when, is more often than not, the first influx of funds is wrong or inadequate. The bureaucracy and red tape in this process is drastically failing our Long Island families who are certainly not at fault for the act of nature that destroyed their livelihoods. This legislation will give them more time to acquire the funds they require.”

Curran said the legislation has been introduced but there is not yet a bill number. He noted that in the past, when FEMA or NY Rising has given an award to qualified homeowners, the award is either wrong or inadequate based on the paperwork that had been filed. He said that homeowners have no choice then but to appeal this award for more funds, which takes more time, while banks want to foreclose on the property.

“This legislation is for the victims who still haven’t rebuilt from Sandy,” said Curran. “It’s very tragic and embarrassing that rebuilding has taken this long and that families are having empty property lots foreclosed on because they lack adequate funding. I will certainly be pushing for the passage of this legislation when we return to Albany for either a special session of the legislature or the new 2016 Legislative Session.”

Source: LI HERALD.COM