Strict Ordinance Targeting Vacant Foreclosures Keeping Lenders On Their Toes

In Southern California, KFMB-TV Channel 8 reports on the strict new ordinance recently passed by the City of Chula Vista that requires mortgage lenders to register and maintain vacant homes that are in foreclosure. Reportedly, unkept foreclosed properties are no longer a big problem in Chula Vista:

• "[O]ur ordinance in Chula Vista the one we wrote says we're not going to let it get to the point of disrepair, if it's in default, and it's vacant you have to maintain it to the neighborhood standard," [code enforcement manager Doug] Leeper said. He says the ordinance targets out of town lenders. [...] "Our ordinance says if you're out of the area you have to hire somebody locally to maintain this property and keep it secured," Leeper said. And if the property isn't maintained, the city has the right to do it and charge the lender or in most cases fine or penalize them.

• "We can fine them up to $1,000 a day per violation per property to a total of $100,000," Leeper said. Leeper says that usually gets the lenders' attention. Chula Vista's foreclosure ordinance has gained national attention. Cities all around the country want to know more about the program.

For more, see Foreclosed Houses Make For Bad Neighbors.