The act of foreclosure is when a lender terminates or attempts to terminate a borrower's rights to mortgage a property. This is done legally to recover the remaining balance of an outstanding loan, usually when the borrower stops making payments.
When a borrower defaults on an agreement, the lender typically has the right to repossess the property by receiving a security interest. However, under certain circumstances, if the borrower repays the debt, the court may grant them equitable rights of redemption. This can create difficulties for lenders in repossessing the property, leading them to often resort to foreclosure.
In late 2007, Indio City in California experienced a housing boom that resulted in a foreclosure crisis. Concerns were raised by residents regarding poorly maintained properties and an increase in serious crimes. The rising home prices attracted more investors and subsequently caused an ongo
...ing rise in foreclosure cases by January 2008 (Kappeler, Victor and Gaines 126). By January 2009, foreclosures had reached 8 percent among Indio's homes. Law enforcement and neighbors observed this alarming situation as foreclosures surpassed a threshold and contributed to an increase in property crimes such as metal theft within the area.
The gated communities were impacted as well, with complete homes being stripped and valuable items stolen, making it challenging to sell these properties. To tackle the problem, the Indio Police Department initiated a project. Nevertheless, there were allegations of the department enforcing municipal and public nuisance laws, which justified their intervention in dealing with the city's foreclosure issue. It is crucial to comprehend the nature of the crisis in order to control the situation.
The police department considered the citizens' complaints and conducted a survey t
assess the state of foreclosure properties. They found that foreclosures affected all neighborhoods and economic classes, with no discernible patterns. The vacant properties emerged as a significant problem, surpassing even the occupied ones. This posed a challenge for banks to take responsibility for such properties. Their research identified a gap in which lenders were not obligated to maintain or secure the properties during foreclosure. This process typically took less than 300 days to complete.
According to Kappeler, Victor and Gaines (127), a lack of accurate information about property owners has resulted in significant resource and time expenditures in trying to locate the responsible parties. In response, the Indio Police Department implemented a three-pronged solution, which included creating a comprehensive registration ordinance, empowering the Code Enforcement Team to enforce the ordinance, and establishing a Housing Resource Center aimed at preventing property abandonment and keeping people in their homes.
To inform the homeowners association, elders, and the general public about the program, various education programs and informal meetings were conducted. In February 2008, the City council passed a foreclosure registration and maintenance ordinance. This ordinance required lenders to assess vacant properties before filling a Notice of Default and mandated them to register all unoccupied properties. This registration process aimed to accurately identify property owners and hold them responsible for maintaining their properties.
The CAD system of the department stores this information for officers to reference during service calls. Additionally, the ordinance requires lenders to guarantee property security and monitor criminal activity and blight prevention. Lenders are also obligated to pay a registration fee, and failure to comply with the ordinance may incur penalties of up to $25,000 per violation (Kappeler,
Victor and Gaines 127). To inform the community about the new ordinance and create alliances with property managers, homeowners associations, and local realtors invested in property maintenance, the Code Enforcement Team takes charge.
Code enforcement played a crucial role in ensuring the success of the strategic approach, particularly in warning homeowners about the risk of foreclosure through the new House Resource Center. The Indio police department reported noticeable results shortly after the project's full implementation, with even the largest national lenders initiating foreclosures to avoid fines and citations. The department recognized the importance of realtors as key partners in achieving project success. Realtors experienced faster home sales and higher prices for properties that were registered and maintained according to the ordinance, providing them with a strong financial incentive to collaborate and avoid dealing with undesirable properties. Thanks to the Housing Resource Center, over 139 families were able to remain in their homes, and around 140 formal counseling sessions were conducted.
The Indio Police Department has received numerous phone calls and walk-ins from homeowners interested in foreclosure process information and counseling. As a result, the City has allocated more funds to the Center (Kappeler, Victor and Gaines 128). Without the department's intervention, there would have been more displaced families, increased crime related to vacant properties, and a higher number of neglected homes. The department deserves credit for addressing these issues. Based on their experiences, they recommend implementing a national foreclosure policy that enables local governments to receive accurate and timely information to aid law enforcement agencies in understanding local foreclosure problems. Officer Anderson also emphasizes the importance of accurate information for officers responding to calls, as it helps
determine responsibility for property maintenance (Kappeler, Victor and Gaines 129). In conclusion, the Indio Police Department's maintenance ordinance and foreclosure registration have been highly successful in preventing the city from falling into disarray.The implementation of the three-pronged solution significantly contributed to the revitalization of the city.
The success of the project was greatly influenced by the realtors, as well as The Code Enforcement Team who worked diligently to educate the City residents about the new ordinance.
Works Cited
- Kappeler, Victor E., and Larry K. Gaines. Community policing: A contemporary perspective. Routledge, 2012.
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