When Gov. Rick Scott met with the Sun Sentinel's editorial
board and reporters last week, he seemed surprised at the extent to which some
banks have shunned responsibility for abandoned homes, with many neighborhoods
left with decaying eyesores.
Gov. Scott said he was reading the Sun Sentinel series by reporters Megan O'Matz and John Maines about decaying properties, and would be paying more attention to the problem. It's about time.
The governor loves to talk about jobs, and, during our meeting with him, he even said jobs were the key to the problem of abandoned properties.
We agree with the governor that more regulations on banks, in this instance, might only raise the cost of borrowing. And we agree that an improvement in the jobs panorama would be the best antidote.
But we would also urge the governor to be more forceful — now. The
governor has the bully pulpit, and should use it to pressure banks to be better
corporate citizens, to be smarter on foreclosures, to work with homeowners to
keep them in their homes.
Some of these homes sit abandoned and unattended to for months, and even years, hurting property values and even becoming dangerous at times, particularly when there is easy access to an empty home or pool. The ensuing legal limbo leaves many wondering who actually owns and is responsible for the property.
There's no reason why there should be a "legal limbo." If the families that took out the mortgage have been evicted, then surely someone — a financial institution in most cases — has laid claim to the property. Funny, bank repossessed vehicles don't seem to end up in such limbo.
The evidence suggests banks force out the borrowers, and then look the other way while the property falls into disrepair to save money on upkeep. That's unacceptable.
Some cities have used fines and liens to force banks to care for abandoned properties. But the fines are routinely bargained down so banks can attract buyers.
The issue of abandoned, foreclosed homes is not a problem unique to South Florida. In Chicago, the city now requires lenders to ensure abandoned properties are secured and maintained. According to the Sun Sentinel series, housing advocates say lenders will start taking better care of properties only when they face millions of dollars in liabilities.
In 2010, New Jersey became the first state to require lenders to correct code violations at any time during foreclosure. In New York, lenders must maintain properties in the period between winning a foreclosure judgment and taking title.
In business-friendly Florida, more regulation on banks seems unlikely. Even with the Sun Sentinel investigation finding more than 10,300 property code violations lodged against banks in 10 South Florida cities since 2007.
But, like the eyesore properties themselves, this is not a problem that is just going to magically disappear. Leadership — and pressure — from the governor and state officials is needed.
If they are just starting to get up to speed on the problem, they need to do so in a hurry.
Gov. Scott said he was reading the Sun Sentinel series by reporters Megan O'Matz and John Maines about decaying properties, and would be paying more attention to the problem. It's about time.
The governor loves to talk about jobs, and, during our meeting with him, he even said jobs were the key to the problem of abandoned properties.
It is more complicated than that. And more leadership by the governor and the
Legislature is sorely needed.
We agree with the governor that more regulations on banks, in this instance, might only raise the cost of borrowing. And we agree that an improvement in the jobs panorama would be the best antidote.
Some of these homes sit abandoned and unattended to for months, and even years, hurting property values and even becoming dangerous at times, particularly when there is easy access to an empty home or pool. The ensuing legal limbo leaves many wondering who actually owns and is responsible for the property.
There's no reason why there should be a "legal limbo." If the families that took out the mortgage have been evicted, then surely someone — a financial institution in most cases — has laid claim to the property. Funny, bank repossessed vehicles don't seem to end up in such limbo.
The evidence suggests banks force out the borrowers, and then look the other way while the property falls into disrepair to save money on upkeep. That's unacceptable.
Some cities have used fines and liens to force banks to care for abandoned properties. But the fines are routinely bargained down so banks can attract buyers.
The issue of abandoned, foreclosed homes is not a problem unique to South Florida. In Chicago, the city now requires lenders to ensure abandoned properties are secured and maintained. According to the Sun Sentinel series, housing advocates say lenders will start taking better care of properties only when they face millions of dollars in liabilities.
In 2010, New Jersey became the first state to require lenders to correct code violations at any time during foreclosure. In New York, lenders must maintain properties in the period between winning a foreclosure judgment and taking title.
In business-friendly Florida, more regulation on banks seems unlikely. Even with the Sun Sentinel investigation finding more than 10,300 property code violations lodged against banks in 10 South Florida cities since 2007.
But, like the eyesore properties themselves, this is not a problem that is just going to magically disappear. Leadership — and pressure — from the governor and state officials is needed.
If they are just starting to get up to speed on the problem, they need to do so in a hurry.
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