Vacant property registration ordinances were created to help protect vacant and abandoned homes from neglect and prevent them from becoming nuisances. Local municipalities use them to collect current and accurate contact information about the lien holder of record, allowing officials to issue prompt notification when a code violation occurs. Municipalities are able to establish a direct point of contact and open the lines of communication with lien holders.
The concept makes sense and aligns a common goal among communities and lien holders to protect and preserve vacant and foreclosed properties and protect the value of homes and neighborhoods.
Although industry best practices for pre-foreclosure maintenance preserve and protect the property from further deterioration, lien holders are limited in what they can do to properties prior to the foreclosure sale. For lien holders to take full responsibility for properties, they also must have possession. To accomplish this, cities should work to shorten foreclosure timelines through their state legislatures.
Time is the issue. In some states it can take up to two years for the foreclosure process to be completed. The longer a property sits vacant, the more susceptible it is to damage and vandalism. It loses value and impacts the value of surrounding properties.
While the accelerated foreclosure process should not apply to occupied homes, other efforts are being made to retain occupancy in properties in various stages of default.
Accelerating the foreclosure process for vacant or abandoned homes is in everyone’s best interest. It allows lien holders to take possession while the property is in good condition and restore it to occupancy more quickly. It helps to uphold property values and maintains the vitality of neighborhoods and communities.
