City: Register Bank Owned Homes Foreclosures or Pay Fine

by Peter Vernon on cities

Canyon Lake in California has issued an ordinance which requires all bank owned homes foreclosures to be registered with the city. Owners of foreclosed properties who failed to comply with the city ordinance will be made to pay a fine.

The registration of bank owned homes foreclosures is part of Canyon Lake’s efforts to alleviate the devastating effects of the foreclosure crisis in the city. Under the ordinance, owners are given 15 days upon acquisition of foreclosed properties to register them with the city. An annual registration fee of $130 is required for each property. Failure to register a foreclosed home will mean paying a fine of as much as $1,000 daily.

Once bank owned homes foreclosures have been registered, they will be inspected immediately to determine if they meet the city code. Owners of these foreclosure properties will be required to maintain them following standards applied to other properties in the city.

In the event that bank owned homes foreclosures are sold by a lender or bank, the buyer is mandated to inform the city about the sale in order to terminate the registration requirement.

Mayor Mary Craton is calling owners of bank owned homes foreclosures to maintain them. She is confident that the city will be able to implement the program successfully.

Councilman Barry Talbot estimated that there are nearly 125 foreclosed houses in the city, adding that as much as 30 properties are receiving notice of foreclosures monthly. He said that many foreclosure homes have fallen into a state of disrepair while others have been occupied by squatters.

He believed that the ordinance would boost efforts to lessen the impact of foreclosures on communities by helping identify owners of the foreclosed properties and ensuring that they are well-maintained.

Meanwhile, Canyon Lake is not the only city in Riverside County that has implemented the ordinance requiring registration of bank owned homes foreclosures. The county itself has implemented the same ordinance, along with cities of Murrieta, Temecula, Lake Elsinore, San Jacinto and Beaumont.

These ordinances are similar in the sense that they require lenders of bank owned homes foreclosures to conduct routine maintenance on properties, such as maintaining lawns, cleaning pools, removing debris and weeds and making sure that the houses are secured.