Bank Foreclosed Houses Prevention in Colorado City

by Donald Hanz on cities

The rising number of bank foreclosed houses has forced the city of Aurora in Colorado to require banks and lenders to register all foreclosed properties on their inventory to monitor them to ensure that they do not become eyesores to communities and magnets to criminals and vandals.

According to neighborhood services director Nancy Sheffield, about 230 out of 900 to 1,000 foreclosed homes in the city were registered on its program designed to prevent the deterioration of these foreclosure houses.

Banks and lenders of foreclosure properties that still have not registered will be sent letters informing them that they have 30 days to register all foreclosed homes on their inventory. Failure to register a foreclosed property would result to a $150 fine for every 90 days, until such time that they register or properties are sold.

Sheffield explains that the city’s program works by giving back to banks and lenders, which hold the titles to all distressed properties in the area, the responsibility of maintaining these foreclosed properties.

In the meantime, code-enforcement officers of the city are regularly checking and monitoring all registered bank foreclosed homes to make sure that they are maintained.

If repossessed homes showed some signs of deterioration, city code-enforcement officers would haul away debris, mow the lawns and do other maintenance tasks. The city will charge the cost of maintaining these foreclosed properties on banks and lenders.

Meanwhile, Deborah Wallace, a city councilwoman, said that Aurora decided to address the problem about these foreclosed properties when complaints by residents worried about weeds, broken windows and doors and other maintenance issues have started to pile up.

Wallace explained that residents were complaining that abandoned and vacant houses were pulling down the values of properties in their area and ruining the image of their neighborhoods.

On the other hand, the city has also launched a program that involves purchasing, rehabilitating and reselling bank foreclosed houses. The program is covered by the $4.5 million federal grant aimed at helping neighborhoods fight the effects of foreclosure properties.

The city started its program by buying and refurbishing two bank foreclosed houses. So far, Aurora has acquired 23 more houses and plans to rehabilitate, refurbish and resell them to homebuyers who have low or moderate income.