| Code Enforcement Departments for Counties and | | | | example, in Broward County Florida, Building Code |
| Municipalities across the United States have been | | | | Inspectors and Code Compliance Officers respond |
| grappling with the increased workload issues | | | | to numerous complaints and concerns regarding |
| created by the rising number of vacant and | | | | single-family homes, condominiums, townhouses |
| abandoned properties due to the continuous | | | | and duplexes that are being vandalized, in severe |
| pursuit of foreclosures by mortgagees (banks, | | | | states of blight, lack of maintenance, security, |
| lenders, and lien-holders). ForeclosureListings.com, | | | | hazardous conditions, and other health and safety |
| confirmed that the "national foreclosure rate in | | | | issues that these properties present. Requiring |
| January 2010 was one foreclosure filing for every | | | | mortgagees and absentee owners of vacant and |
| 466 U.S. households; the most severe problems | | | | abandoned properties to correct such violations |
| continue in the West and in Florida. | | | | presents significant challenges to the Code |
| Unemployment, economic hardship, negative | | | | Enforcement process. Additionally, when these |
| equity, and credit availability are driving the | | | | properties are abandoned and vacant for |
| foreclosures." If a property owner was in default | | | | extended periods of time, there may be |
| with their mortgage payments and could not | | | | unexpected problems for purchasers of these |
| satisfy the outstanding debt or bring the | | | | properties such as property maintenance issues, |
| mortgage and any outstanding penalties current | | | | outstanding building permits, and code |
| during the pre-foreclosure stage, they were | | | | enforcement liens and/or assessments. In |
| surely going to be faced with having to leave their | | | | response to recent events in the housing market |
| home. In some cases, property owners that | | | | which have led to a drastic rise in the number of |
| were upside down in their mortgage or through | | | | foreclosed homes located within the |
| financial hardship found themselves in a position | | | | unincorporated areas of Broward County, the |
| where expenses were just too overwhelming | | | | Abandoned/Vacant Real Property Registration and |
| may have chosen to just walk away from their | | | | Certification ordinance was created to protect |
| homes, no matter how difficult it was for them | | | | unincorporated residential neighborhoods from |
| and their families. In a time when most | | | | becoming blighted through the lack of adequate |
| jurisdictions, especially, small local governments are | | | | maintenance and security of abandoned and |
| also dealing with the difficulties created by financial | | | | vacant properties. The program is intended to |
| dilemmas and hardships that are reducing the | | | | address those properties that are vacant and |
| workforce and resources, the rising foreclosures | | | | abandoned that have come under the control of a |
| have taken its toll on code enforcement | | | | mortgagee or beneficiary as a result of the |
| departments that are tasked with trying to keep | | | | default of the borrower and/or the foreclosure |
| neighborhoods and communities from becoming | | | | process. The program also applies to properties |
| blighted, unsafe, and depreciated in value. | | | | that were obtained under a deed in lieu of |
| The problems that were created by sitting vacant | | | | foreclosure. The program requires mortgage |
| residential properties, such as vandalism, unsafe | | | | lenders to inspect defaulted properties to confirm |
| open structures, stagnant swimming pools, just to | | | | that they are occupied. If a property is found to |
| name a few, created immense expense as | | | | be vacant, the program requires that the lender |
| communities where tasked with securing and | | | | exercise the abandonment clause within their |
| abating these problems without the assistance | | | | mortgage contract, register the property with the |
| from any property owners or residents. Often, | | | | County and immediately begin to secure and |
| the property owners who were responsible for | | | | maintain the property to program standards. |
| maintaining their homes during this difficult time | | | | The ordinance also requires that a local property |
| felt it unfair that they were still required to | | | | management company be contracted to perform |
| provide for regular upkeep of their properties or | | | | bi-weekly inspections to verify compliance with |
| face code enforcement penalties while the | | | | the requirements of the ordinance, if the owner |
| abandoned foreclosed homes next door were | | | | of the property is a corporation, partnership, and |
| neglected and left to bring down the value of | | | | or out of area mortgagee/owner. The property |
| their homes and detract from their neighborhoods. | | | | must also be posted with the name and 24-hour |
| According to the latest report from RealtyTrac, a | | | | contact number for the property manager who |
| company that monitors the trends of | | | | can respond to problems or concerns. The |
| foreclosures across each state, "Florida posted | | | | inspections and certification portion of this |
| the nation's second highest state foreclosure rate | | | | program offers added protection for buyers of |
| in November 2009 with one in every 165 housing | | | | foreclosed residential properties in the |
| units receiving a foreclosure filing during the | | | | unincorporated areas of Broward County by |
| month. Florida took the No. 2 spot from California, | | | | requiring all title holders of these properties which |
| which posted the nation's third highest foreclosure | | | | are acquired through a Certificate of Title |
| rate." It became common for community | | | | (Foreclosures and Judgments), in accordance with |
| members and leaders around the State of Florida | | | | Chapter 45, Florida Statutes or under a deed in |
| to feel that the mortgagees were slow to take | | | | lieu of foreclosure/sale to obtain a Certificate of |
| responsibility for these assets and started to put | | | | Foreclosure Inspection prior to offering the |
| pressure on county and local governments to | | | | property for sale, transfer, or other alienation. |
| address these properties, without using their tax | | | | This requirement allows for the performance of a |
| dollars to do so. | | | | cursory visual inspection of the property and an |
| Foreclosure Procedure in the State of Florida | | | | inspection report by a code enforcement officer |
| There are a few different types of foreclosure | | | | to provide a disclosure of any non-compliance with |
| procedures in the United States. According to | | | | property maintenance codes, outstanding County |
| Erate.com, "One common type of foreclosure is | | | | liens and/or special assessments encumbering the |
| the 'deed in lieu of foreclosure' arrangement. | | | | property and to also identify any outstanding |
| Often called 'strict foreclosure,' the bank claims | | | | building permits. |
| the title and possession of the property back to | | | | Steps taken to address problems with |
| satisfy the debt. The other most common type is | | | | foreclosures |
| the proceeding known simply as 'foreclosure' or | | | | As the federal, state, and local governments look |
| 'judicial foreclosure.' Here the property is exposed | | | | for ways to assist distressed homeowner's in |
| to auction by a county or court official. The | | | | keeping their homes or to assist purchaser's and |
| winning bidder receives a deed to the property. | | | | investors to acquire foreclosed homes to get |
| Banks and other lenders usually bid on the | | | | them repaired, maintained and occupied, the banks |
| property in the amount of the owed debt, and if | | | | have also focused on addressing the concerns of |
| no other buyers step forth they will receive the | | | | local governments in regards to the problems |
| title to the property. Other states employ yet | | | | associated with vacant and abandoned properties. |
| another type of foreclosure, called 'non-judicial' or | | | | Mortgagees may utilize their own staff or obtain |
| 'statutory' foreclosure. In this case, when a | | | | the services of companies such as asset |
| borrower fails to make payments, the lender may | | | | managers or mortgage servicers to handle |
| be issued a notice of default and intent to sell. If | | | | numerous functions and responsibilities related to |
| the borrower does not solve the default with | | | | foreclosed properties from pre-foreclosure thru |
| payments or other means, the property will be | | | | property preservation ultimately to sale or |
| sold at public auction." In the State of Florida, | | | | transfer to a new owner. The companies employ |
| foreclosures are handled as judicial procedures | | | | a variety of staff to handle such broad areas |
| that are processed through the court system. | | | | such as property management, real estate and |
| This process can take a bit of time, 5 months or | | | | title services and have started to place a greater |
| more, beginning with the lender advising a | | | | emphasis on property preservation and code |
| mortgagor that they are in default and | | | | compliance. These companies employed by the |
| subsequently recording a notice of Lis Pendens. | | | | banks that utilize their services have recently |
| The homeowner will be served notice of | | | | focused their attention on the ordinance |
| complaint, which basically provides notice of intent | | | | requirements for properties under their |
| to foreclose and contains the total debt. The | | | | management, at the same time, promoting a |
| property owner gets to have an opportunity to | | | | partnership with local jurisdiction code |
| appear in court to answer the complaint, | | | | enforcement staff to help alleviate the problems |
| however, if the court rules against the property | | | | with vacant and abandoned properties and create |
| owner, a judgment of foreclosure will be issued. | | | | a better method of communication when |
| After the judgment has been entered, a writ will | | | | problems are not being addressed with property |
| be issued by the court authorizing a sheriff's sale. | | | | maintenance issues. According to information |
| Usually, if the property owners remain inside the | | | | provided on the website for The Mortgage |
| home, they would be considered as trespassing. If | | | | Bankers Association, this organization promotes |
| the property is sold by judicial sale, Certificate of | | | | the utilization of the MERS ® Mortgage |
| Title will be issued to the new property owner or | | | | Electronic Registration System database to obtain |
| returned to mortgagee. | | | | a list of property preservation contacts to assist |
| Challenges for code compliance | | | | local jurisdictions in their efforts, especially in the |
| Code enforcement officers typically have to | | | | case of securing open and unguarded, vacant |
| address code violations on occupied properties | | | | properties. |
| where the residents are either unaware of the | | | | Conclusion |
| code requirements, neglectful, financially | | | | Properties that continue to be abandoned, |
| distressed, or possibly violating code requirements | | | | neglected, and unsecured for extended period of |
| intentionally, however, in the case of abandoned | | | | times, which may include years, work against the |
| or vacant homes, these residents have either | | | | mortgagees, as these conditions continue to force |
| walked away or have been required to vacate | | | | property values continue to decline, costs for |
| the properties leaving the property maintenance | | | | repairs to increase due to vandalism and |
| and violations for another responsible party who | | | | deterioration and liability for the mortgagees |
| have control over the properties which in most | | | | remain as squatters and children get access inside |
| cases are the holders of the mortgage notes. | | | | unsecured residences. In order for code |
| This becomes a difficult task as property owners | | | | enforcement to be truly proactive, it must take |
| were often required to vacate the premises | | | | steps to prevent problems not address them |
| before the property was either sold or taken | | | | after the fact. Even though most jurisdictions |
| back by the mortgagee through completion of | | | | charge a fee for registering these properties, the |
| the foreclosure process leaving the ownership | | | | fees are usually intended to offset the operating |
| records unchanged. Code enforcement officers | | | | costs for the program which includes all |
| were now faced with dealing with code violations | | | | administrative work involved, as well as the |
| on vacant properties where tracking down the | | | | increased field investigations work that these |
| responsible parties for these properties was | | | | vacant and abandoned properties require. The |
| extremely difficult. Even when a mortgagee's | | | | proactive nature of these programs to seek out |
| name was located from researching foreclosure | | | | the responsible property preservation and |
| filing papers, there would only be large corporate | | | | servicers work to reduce the costs for the |
| bank or financial institution name and an address | | | | mortgagees as well as the local jurisdiction. Fines |
| that would not lead you directly to someone who | | | | and liens that are placed on these properties due |
| was responsible for the property and would get | | | | to daily running penalties and costs for abatement |
| lost in the maze. With strapped resources and | | | | work such as performing board-ups, stagnant pool |
| increasing demands from community members, | | | | abatement, lot mowing, and junk, trash removal |
| local governments started to adopt various | | | | may reach in the hundreds and even thousands. |
| vacant property registration programs that | | | | Because many of these properties remain in the |
| required mortgagees to become more involved | | | | name of the previous owner until the property is |
| with these foreclosure properties either from the | | | | transferred and the new owner is properly |
| time the property owners was going into default | | | | recorded in the county records, most jurisdictions |
| or when a property became vacant and | | | | are only required to cite the owner shown on |
| abandoned. Although some registration programs | | | | their tax assessor's records or deeds in order to |
| may only consists of providing information such | | | | address violations. The property registration |
| as responsible party name and contact | | | | programs have accomplished numerous goals |
| information, some programs have required | | | | which include increased responsibility and |
| significant steps be taken for a vacant, | | | | accountability by the mortgagees in regards to |
| abandoned property including providing electronic | | | | these assets, adherence to local property |
| security systems. | | | | maintenance and safety building codes, and |
| Sample Registration Program, Broward County | | | | increased attention towards making these |
| Florida | | | | properties viable again for ownership and |
| Local governments have had to take steps to | | | | heightened steps toward re-occupancy. The more |
| bolster local communities against the negative | | | | properties remain occupied and less are bank |
| effects of vacant and abandoned properties and | | | | owned or abandoned, the less for the need for |
| obtain voluntary compliance with property | | | | these types of vacant property ordinances and |
| maintenance and building code violations. For | | | | registration programs. |