The Rise and Fall of Carlos Justo
The Desert Suns Expose on Indio's New Foreclosure Ordinance
Indio's foreclosure ordinance drawing national attention
05/09/2009
Xochitl Pena covers Indio and Coachella for The Desert Sun. She can be reached at 760-360-1340 or at Xochitl.Pena@thedesertsun.com.
Indio is at the forefront of battling the foreclosure fallout and the nation is taking notice.
More than a year ago, the valley's largest city was plagued with eyesores.
Abandoned, foreclosed homes with overgrown lawns and dirty pools peppered the community.
There are still unsightly homes, but the problem isn't as rampant, thanks to adoption of a foreclosure ordinance that is being used to craft a national model for cities across the country.
The progressive ordinance holds banks responsible for upkeep of the homes and has garnered interest from media outlets across the country as well.
The Wall Street Journal ran a front- page article on May 1 about the ordinance. ABC's "Nightline" was in Indio filming as recently as Friday and "CBS Evening News with Katie Couric" crews are supposed to be in town next week.
"It's made a huge difference. Once the banks comply, windows are fixed, the pools are drained. ... they're selling (the homes)," said Jennifer Stroud, a code enforcement officer with the city.
There are about 2,600 homes in foreclosure, with about 1,100 of those vacant.
Not only is the city battling blight through the ordinance, but it's also trying to keep people in their homes through counseling and intervention.
And beginning this summer, it will begin to purchase foreclosed homes to fix up and sell.
The city was notified Wednesday it had been awarded $2.8 million from the county to purchase the homes and then sell them to qualifying first-time homebuyers.
"We have a total package. We're addressing the foreclosure problem, but now we're putting people back in the homes," said Mark Wasserman, assistant to the Indio city manager.
Foreclosure ordinance
Indio was the first valley city to adopt a foreclosure ordinance that hold banks responsible for keeping homes tidy.
The law, adopted in March 2008, requires that abandoned properties be registered with the city and maintained. If not, the owner — usually the bank in foreclosed situations — could face fines and in a worst case scenario be arrested for violation of a city ordinance, which is considered a misdemeanor.
"They could be arrested and go to jail," said Jason Anderson, a code enforcement officer with the city who helped draft the ordinance.
With a high compliance rate and most banks taking responsibility, the city hasn't had to make an arrest yet.
Since adoption, 458 homes have been registered by banks and about $68,700 in fees have been collected.
The new law's success led to a recent invitation to Washington, D.C., for Anderson and other city officials to share details with federal officials alongside the cities of Baltimore, Miami, Dallas and St. Louis.
The ordinance is now being incorporated into a national model that cities across the country will be able to use to help combat abandoned homes and related crimes.
"We responded successfully to a problem that every community is facing," Wasserman said. "It's been a team approach to a very complex problem."
Housing resource center
With a handle on blight, the city decided in August to open the Housing Resource Center to provide free and confidential default and foreclosure prevention counseling.
The center, operating in conjunction with the Inland Fair Housing and Mediation Board, is sponsored by the city and located inside a city-owned building at 82-862 Miles Ave.
On Wednesday, the City Council approved moving the operation to a larger building at 45-110 Oasis St. starting July 1 and plans to expand services.
New services could include fair housing and tenant landlord mediation, first-time homebuyer training, and home property maintenance workshops.
"It's another way we can better serve our community," said Jesus Gomez, housing programs manager.
Buying homes
Beginning this summer, the city plans to purchase approximately 20 foreclosed homes, rehabilitate the properties and resell them to first-time, low- to moderate-income homebuyers.
The $2.8 million to purchase the homes comes from the Federal Neighborhood Stabilization Program funds from the Riverside County Economic Development Agency.
Proceeds from the sales of the homes will be returned to the county.
"We're addressing the blight and making the bank responsible," said Wasserman. "Now we're getting money and funds to rehab the homes and get people back into the homes."
California New Home Track Gets Knocked Down
Click The Pic Above For VIDEO and INTERVIEW
Banks find a new solution to the foreclosure crisis:
Let's knock down brand new, never lived in homes rather then keeping them!
These unsold California homes get demolished after the bank foreclosed on them. Lender execs stated they decided to demolish the homes since it was cheaper than maintaining them.
Click the pic above to view the video.
South Carolina Supreme Court Stops Foreclosures
5/6/2009
State Supreme Court Stops Foreclosures, Gives Loan Modification a Chance: What Next, and Will Other States Follow?
One recurring theme of the ongoing recession has been the seemingly incessant stream of foreclosures. However, South Carolina's highest court late yesterday afternoon issued a temporary restraining order (TRO) putting a freeze on thousands of imminent foreclosure sales in the state, reports the AP. The ruling provides some very needed relief to qualifying homeowners in distress by providing them with some time to seek mortgage modification under new government programs.
The TRO specifically "prevent[s] the foreclosure sale of any property arising out of a loan owned or guaranteed by petitioner or Freddie Mac or held by a servicer who has signed an agreement to participate in the HMP." The HMP refers to the Home Affordable Modification Program, which was announced in March of this year, and is a government program designed to help millions of qualifying at-risk homeowners by modifying their loans (see links below).
The South Carolina ruling requires the companies seeking foreclosure to notify all parties by May 15, 2009 as to whether or not the loan is subject to modification under the new programs. If the loan qualifies, then the freeze on that foreclosure will continue until a decision on modification is made. If the lender says the loan doesn't qualify for modification, that finding can be disputed in court. If a borrower qualifies and obtains a modification, then the foreclosure proceedings will be terminated. Of course, should they not qualify or obtain the modification, then the foreclosure proceedings can resume.
RealtyTrac Inc. says the ruling could affect 5,000 South Carolina homes. Although it is unclear whether such relief will be sought by Fannie Mae in other states, homeowners with qualifying mortgages facing imminent foreclosure might be able to follow up directly with the agency. By the same token talking to a local real estate attorney about pursuing similar (or other) relief may also be a good option.
State Supreme Court Stops Foreclosures, Gives Loan Modification a Chance: What Next, and Will Other States Follow?
One recurring theme of the ongoing recession has been the seemingly incessant stream of foreclosures. However, South Carolina's highest court late yesterday afternoon issued a temporary restraining order (TRO) putting a freeze on thousands of imminent foreclosure sales in the state, reports the AP. The ruling provides some very needed relief to qualifying homeowners in distress by providing them with some time to seek mortgage modification under new government programs.
The TRO specifically "prevent[s] the foreclosure sale of any property arising out of a loan owned or guaranteed by petitioner or Freddie Mac or held by a servicer who has signed an agreement to participate in the HMP." The HMP refers to the Home Affordable Modification Program, which was announced in March of this year, and is a government program designed to help millions of qualifying at-risk homeowners by modifying their loans (see links below).
The South Carolina ruling requires the companies seeking foreclosure to notify all parties by May 15, 2009 as to whether or not the loan is subject to modification under the new programs. If the loan qualifies, then the freeze on that foreclosure will continue until a decision on modification is made. If the lender says the loan doesn't qualify for modification, that finding can be disputed in court. If a borrower qualifies and obtains a modification, then the foreclosure proceedings will be terminated. Of course, should they not qualify or obtain the modification, then the foreclosure proceedings can resume.
RealtyTrac Inc. says the ruling could affect 5,000 South Carolina homes. Although it is unclear whether such relief will be sought by Fannie Mae in other states, homeowners with qualifying mortgages facing imminent foreclosure might be able to follow up directly with the agency. By the same token talking to a local real estate attorney about pursuing similar (or other) relief may also be a good option.
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