System Developed to Check Code Violations
DepotPoint Inc., a Web-based default management, short sale and REO solutions provider based in Bellevue, Wash., is allowing users of its TrackPoint technology platform an opportunity to perform code violation checks on their defaulted properties.
DepotPoint has partnered with Code Violation Services Inc., a provider of disclosure reports that do not adhere to local laws and vacant property registration services, in order to launch this system. The Windsor, Colo.-based company will analyze and identify unrecorded, municipal code violations on defaulted properties managed through TrackPoint through the new system.
Every year, hundreds of thousands of fines are levied against vacant foreclosed properties impacting neighborhoods, local governments, mortgage servicers and asset owners.
The types of code violations issued include property registration noncompliance, trash in the yard, broken windows, algae in pools, overgrown lawns and property improvements made without permits. A combination of any of these violations can result in a fine of more than $250.
The code violation service allows users of this system to not suffer from costly fines from unresolved violations and reduces the timelines for the sale of REOs and other distressed properties.
“Unresolved code violations are a huge obstacle to distressed property sales,” said Joe Filoseta, president and CEO of DepotPoint. “Our partnership with Code Violation Services will help banks, asset managers and other parties find and resolve current violations, as well as work proactively to prevent new ones. The result is a reduction in loss severity and distressed sales that move forward unimpeded.”
Before any REO sale can be completed, all code violations need to be addressed. But most servicers, investors and asset managers lack the knowledge, technology and resources to identify any type of infringement. At the same time, many local municipalities do not have the resources to track down violators, which increases the fines and slows down REO sales.
“The skyrocketing foreclosure rate over the past several years has resulted in an extraordinary number of code violations nationwide, which has made it extremely difficult to return nonperforming properties into homes for deserving families,” said Rudy Krupka, president and CEO of CVS. “I know we share DepotPoint’s commitment to reversing this trend and look forward to working together.”