Fast-Tracking
Foreclosures: Legislators Join the
Conversation
By Robert Klein
There are many theories on what needs to be done at local
levels when it comes to jump starting statewide economies and reviving housing
markets. In states that utilize a judicial foreclosure process
legislatures are increasingly turning to fast-tracking vacant and abandoned
properties as a solution. Although this concept is not new to our industry, we
now find that local governments are beginning to realize the devastating long
term effects that a lengthy foreclosure timeline on vacant and abandoned properties
can have on communities. This leads me to believe that those of us with
boots on the ground experience are doing a better job of communicating this
problem with audiences outside of our universe, namely legislative bodies that
have the ability to affect this type of change.
Governor Pat Quinn of Illinois signed a fast-tracking bill into law that was debated and negotiated for over two years in the state's general assembly. The law decreased the Illinois foreclosure timeline from anywhere up to 600 days to just 3 months. The bill even went so far as to indemnify servicers from trespassing charges when entering homes for preservation purposes.
The state of New York followed suit this summer when they approved a similar bill hoping to free up foreclosure dockets that are more than three years behind. Effective this July, Nevada put into place an expedited process for the foreclosure of abandoned properties. Connecticut crafted legislation that expedited the foreclosure process and provided support for homeowners through the mediation process.
Ohio has introduced a bill in the House of Representatives that would fast-track abandoned properties and proposes extinguishing homeowner's redemption rights. The bill also establishes a protocol for properties to be donated to local land banks if the circumstances permit.
These are just a few examples of legislative victories. While no two laws are the same state to state, the goal remains the same: shorten the time period the properties stand vacant and minimize the impact on communities where they are located. More broadly, halt the perpetuation of blight created by these properties. This goal should not overshadow the fact that this type of legislation simultaneously acts to help homeowners. First, it eliminates legal delays that can be costly to homeowners and often causes them to abandon their properties. Second, it prevents expensive and avoidable penalties and makes settlements in reach for struggling homeowners.
The aforementioned successes are no doubt the fruits of an industry raising awareness around this issue. Expedited or fast-tracking foreclosures for clearly vacant and abandoned properties is a critical component in addressing urban blight and ultimately reversing the effects of the housing crisis. This axiom that was once known only to our narrowly framed universe is now making its way into the mainstream and the appropriate audiences are taking note. Despite this progress there is still much work to be done in judicial foreclosure states that have yet to raise the fast-tracking issue. States like Illinois, Nevada, New York and Connecticut are just the tip of the iceberg. Now more than ever it is important that this conversation continues to evolve and local legislatures see the value in making these changes to provide for its communities today and tomorrow.
Governor Pat Quinn of Illinois signed a fast-tracking bill into law that was debated and negotiated for over two years in the state's general assembly. The law decreased the Illinois foreclosure timeline from anywhere up to 600 days to just 3 months. The bill even went so far as to indemnify servicers from trespassing charges when entering homes for preservation purposes.
The state of New York followed suit this summer when they approved a similar bill hoping to free up foreclosure dockets that are more than three years behind. Effective this July, Nevada put into place an expedited process for the foreclosure of abandoned properties. Connecticut crafted legislation that expedited the foreclosure process and provided support for homeowners through the mediation process.
Ohio has introduced a bill in the House of Representatives that would fast-track abandoned properties and proposes extinguishing homeowner's redemption rights. The bill also establishes a protocol for properties to be donated to local land banks if the circumstances permit.
These are just a few examples of legislative victories. While no two laws are the same state to state, the goal remains the same: shorten the time period the properties stand vacant and minimize the impact on communities where they are located. More broadly, halt the perpetuation of blight created by these properties. This goal should not overshadow the fact that this type of legislation simultaneously acts to help homeowners. First, it eliminates legal delays that can be costly to homeowners and often causes them to abandon their properties. Second, it prevents expensive and avoidable penalties and makes settlements in reach for struggling homeowners.
The aforementioned successes are no doubt the fruits of an industry raising awareness around this issue. Expedited or fast-tracking foreclosures for clearly vacant and abandoned properties is a critical component in addressing urban blight and ultimately reversing the effects of the housing crisis. This axiom that was once known only to our narrowly framed universe is now making its way into the mainstream and the appropriate audiences are taking note. Despite this progress there is still much work to be done in judicial foreclosure states that have yet to raise the fast-tracking issue. States like Illinois, Nevada, New York and Connecticut are just the tip of the iceberg. Now more than ever it is important that this conversation continues to evolve and local legislatures see the value in making these changes to provide for its communities today and tomorrow.
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