Foreclosure Upkeep? What is it and who should do it?

Cities are starting to frown on properties that are not maintained and up to code.  The reason for this concern is that the foreclosed homes are not being taken care of and is bringing down the neighborhoods.  Of course there are some question as to who to go after.  People are not cleaning up the property before they leave, instead most are leaving trash, personal items, unfinished home improvement projects, dogs, feas, cats, in some cases unsafe structures and don't even mention a yard that is not maintained and haven't been for a long while. This is a concern for neighborhoods that have that "owner pride" and are concerned about their property value going down -- right alone with the neighborhood value.

California has one of the highest foreclosure rates in the nation. Many communities, particularly in the Central Valley, are riddled with homes that have been abandoned by buyers who could not afford their mortgage payments when they reset to higher rates. This problem is not just a California problem, however, Stockton is one of the hardest-hit communities and is developing an ordinance that would require property owners to provide a local contact and pay a minimal fee for each vacant home. But... this is not just a Stockton problem.  Take a look at Sacramento, Oakland and other cities -- nationwide!

In many cases, the vacant properties are overgrown with weeds and shrubs and have become magnets for squatters and vandals. Swimming pools often become stagnant, turning into breeding grounds for mosquitoes.

Most cities will issue default judgments for code violations and imposing the maximum fine, which varies from state to state, city to city.  These cities can and will put a lien on the property.  In some cities this could impede the bank's ability to buy or sell other properties in the area.

Other jurisdictions have explicitly required upkeep on foreclosed properties. The Manteca, CA city council approved foreclosure upkeep rules that require homeowners to keep up foreclosed properties after tenants have moved out. Homeowners that neglect their homes would be fined up to $1,000 a day. Also, homeowners are required to maintain yards outside homes built after 1993. If they don't, the city can hire contractors for the upkeep and pass the bill onto the owners. 

In Oakland, CA the city is working on a rule that will allow them to fine the bank and put a lien on the property due to violation of the code to keep up your property - even in these foreclosure times.

There is a bill SB 926 -  That in summary would enact several changes to the procedures that must be followed 

before the holder of a mortgage may issue a notice of default or a notice of trustee sale, require the holder of 

a mortgage to mail a specified notice to the tenant(s) of a property on which foreclosure proceedings have 

begun, and impose penalties on property owners who fail to adequately maintain foreclosed properties, as 

specified.  Banks and mortgage companies face fines of $1,000 a day if they allow foreclosed homes to 

become run down and a source of neighborhood blight under a bill that passed the state Senate.           

What is your city doing about foreclosures that are not kept up?

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