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City of Cleveland Demolitions
January 31st, 2006

A recent article in the Cleveland (OH) Plain Dealer discusses the city's demolition process.

Demolition nearly halts in Cleveland

City Council pleads for speed
 
Wrecking crews tore down a house on Reno Avenue in the fall of 2003, and two years later, its tumbling walls reverberate throughout Cleveland.

Demolitions of abandoned homes have slowed to a trickle because of the Reno Avenue house. The bank that held the mortgage on it sued the city in September for tearing the house down without notice. The Jane Campbell administration, fearing more lawsuits, reacted by stalling most demolitions.

The result: 80 buildings that were scheduled for demolition remain standing, monuments to urban decay.

"Although there technically has not been a moratorium, what has happened has had the same impact as one," said Edward Rybka, the interim Building and Housing director.

Only a few days into his new job last week, Rybka's former City Council colleagues pleaded with him to speed up the process.

For many of them, the issue of abandoned buildings is one of Cleveland's most pressing.

Cleveland was a city built for twice the number of people who now live in it. As poverty increased, homeownership rates decreased and foreclosures went up. Thousands of homes ended up empty. Add the vacant storefronts that dominate many neighborhood retail strips and hulking factories that closed as Cleveland's industrial economy soured, and you have a city full of rotting buildings.

In some of the city's poorest neighborhoods, such as Glenville and Hough, the problem has been festering for nearly four decades.

The city hasn't done a survey of how many buildings are candidates for demolition.

The gap between the number of buildings the city condemns annually and those demolished offers a glimpse at the scope of the problem. In 2004, the city condemned 861 structures but had only enough money to tear down 302. Last year, the city condemned 565 structures but bulldozed only 195.

Buildings often stay on the condemned list for years.

Such is the case with a brick retail building at the corner of East 105th Street and South Boulevard in Councilwoman Sabra Pierce Scott's Glenville ward. In front of it is an RTA bus stop. On the side is a school-bus stop. About an hour before school was dismissed Jan. 19, bricks cascaded from the fade of an exterior side wall, forming a heap near the bus stop.

A few days earlier, Scott, who chairs the Community and Economic Development Committee, had joined her colleagues in sharing frustrations about abandoned buildings. They pledged to make tackling the structures a priority this year.

Another condemned building in her ward stood for years and was torn down last year only after a fire left it teetering.

"If that hadn't happened, it probably still would have been on the condemned list," she said.

The East 105th Street building probably won't be torn down anytime soon because, even after the bricks fell from it, the city says it is not an immediate threat. Scott hopes to find money to raze it.

Across town, a dilapidated building on West 103rd Street in Councilman Jay Westbrook's ward had finally made it to the demolition list. The contractor prepared the site, delivering dirt to fill in the big hole that would be left after the house's remains were carted from the site.

The demolition was one of those the Campbell administration stalled because of the lawsuit.

The city halted demolitions because officials want to review title searches on all houses slated to be torn down. The city's policy had been to search deed records for owners' names going back only 15 years. But many mortgages are for 30 years, so the city's searches did not turn up banks with an interest in some homes.

Officials have increased their records searches to cover 30 years, but the extra work takes time. Rybka is forming a three-person team of clerks to do the searches. Before that, housing inspectors did the searches in addition to their other duties.

The slowdown has heightened several council members' concerns that the city hadn't been aggressive in eliminating abandoned and vacant buildings. Rybka said Mayor Frank Jackson's administration will make demolition a priority.

Councilman Matthew Zone said the city should follow the lead of cities like Philadelphia that have borrowed millions of dollars to address housing issues.

Rybka said some members of the Campbell administration suggested borrowing enough money to tear down 1,000 buildings a year, but the proposal never went anywhere.

Cleveland has traditionally relied on federal grants, which have decreased in recent years.

Rybka said the city could get more money for demolitions by being more diligent about recouping the cost of demolitions from property owners. In 2004, for example, the city spent $2.6 million on demolitions but only recovered about $600,000.

The city now puts liens on the demolished property in an effort to get back the cost, which is about $5,000 per house.

To view the online article please click on the following link.

City of Cleveland Demolitions

PLTA Article Hurricane Katrina
January 30th, 2006
A recent article in "Common Ground," the quarterly publication of the Pennsylvania Land Title Association (PLTA) highlighted the efforts made by the real estate and land insurance industries to overcome the challenges of displaced offices, ruined records and relocated employees to push forward with recovery, re-establishment and a return to normalcy in the disaster areas.  Safeguard contributed to the article by discussing the desire of lenders to help get people back home, rather than push forward with the foreclosure process.  
 
The article also expanded on the efforts of the government and the private sector to encourage property repair efforts on damaged homes through financial assistance programs and a halt on the foreclosure process.
 

Getting People Back Home…

The federal government and private industry have developed means to help displaced and rebuilding homeowners. In October, the US Department of Housing and Urban Development (HUD) introduced a mortgage financing program that requires no down payment for people whose homes have been destroyed or damaged due to Hurricanes Katrina or Rita. Those who qualify can choose to buy anywhere in the United States. Under the special mortgage program, called Section 203(h), HUD, through the Federal Housing Administration (FHA), will insure mortgages for individuals or families in a Presidentially-declared disaster area whose residences were destroyed or damaged to such an extent that reconstruction or replacement is necessary.

HUD also called for all FHA-approved mortgage lenders to offer a 90-day moratorium on principal and interest payments for property owners in the flood-damaged areas, and a postponement of all foreclosure proceedings during the period, which ran from September through November and was recently extended through February, 2006. The Mortgage Bankers Association reiterated the moratorium request to its members, and Freddie Mac and Ginnie Mae played along, even in some cases authorizing the return of mortgage payments to homeowners, providing assistance to lenders with large exposure in the affected regions, and discounting fees for new loans in these areas.

Under the FHA Mortgage Assistance Initiative, announced December 1, homeowners who plan to rehabilitate properties damaged by Hurricane Katrina, Rita and Wilma will be entitled to an advance payment equal to 12 months of principal, interest, taxes and insurance. The insured advance from lenders need not be repaid until the home is sold, but borrowers commit to return to the property and resume making mortgage payments by September 2006. Tens of thousands of mortgagees with FHA-insured loans will find it more attractive to repair their homes in the Gulf disaster areas, potentially jump-starting the rebuilding of established residential neighborhoods.

The program addresses part of the very complex issue of who will pay for the massive rebuilding equired in the impacted states. If homes are not rebuilt, the FHA could face huge claims from lenders who foreclose on properties damaged by the hurricanes. In the foreclosure process it’s likely that the lenders would bear enormous losses while owners would lose homes and many would face bankruptcy. In addition, the FHA program offers hope to displaced residents of devastated communities that their communities will come back, and that when they return they will be among familiar faces.

So will there be a glut of distressed property on the market in Louisiana and Mississippi? Probably not. The feeling is that banks are in no rush to foreclose on displaced homeowners, any of whom have not even seen their homes for months and have no income to fund mortgage payments.

Michael Halpern, special projects manager at Safeguard Properties , which provides inspections and preservation services to the mortgage servicing industry, points out that foreclosure is an especially unattractive option to lenders, who would likely find the foreclosed property, uninhabitable, unsalable and worth much less than their loan value.“Lenders never want to foreclose on their loans, as this is just plain bad business”. In the disaster area, the lenders are desperately trying to make contact with the borrowers in order evaluate each case to see how they can work something out with the owner in order to keep them in their homes.”

…Wherever Home Is

Many properties have already been sold by residents who have received insurance settlements and decided to move elsewhere. Most of the speculators buying these properties will hold them until flood control projects are well underway and property/casualty and flood insurance can be issued. A large volume of litigation looms, as insurers battle to determine whether damage was caused by flooding (not usually covered by homeowners policies) or wind.

The evidence indicates that many of those displaced by the storm will not be coming back, at least not anytime soon. Cities like Baton Rouge, Memphis, Atlanta and Houston have offered emigrants a chance to get back to work and on their feet, and Federal grant and loan programs have encouraged them to buy homes in their new towns.

There has already been a massive population shift – Metropolitan New Orleans, once home to more than 600,000 residents, was down to about 25,000 in the fall. People needed to move quickly to places where there were jobs, schools and social services. Baton Rouge doubled in population almost overnight, while Lafayette grew by 40%. How many of those transplants will put down roots, and how many people will be ready to resettle New Orleans when New Orleans is ready for them?

As an Association, LLTA has pressed on despite obstacles, says Maxwell, who agreed to serve a second year as president. “Our annual December conference in New Orleans was canceled. It’s meant for people to get together socially and do some Christmas shopping, but who wants to go to New Orleans now? Besides, Association activities have not been a priority for most of our members.”

Nonetheless, the LLTA managed to get a good turnout of more than 80 members at its annual meeting in Baton Rouge in early December. And the association is already planning to celebrate its 50th anniversary next year with a gala event at its conference…in New Orleans.

Bill Kahalley of Dixie Land Title Association says “Many of our historic coastal towns are literally gone and no one knows when or where the towns will be rebuilt. Some people are trying to sell out, and because speculators are coming in to pick up those properties for tourism development. We’re actually ahead of last year’s numbers.” Kahalley expects to see a ‘hurricane hangover’ of a few months in the residential market, but for those Mississipians and Alabamans on the coast who can hang on through the lull, the rush will come. “It’s just human nature, I guess, that as long as a property’s near the water, people are going to want to live there.”

There’s already brisk activity in areas where damage was slight. Ken Wright says the month of November was the busiest ever for the United Title office in Slidell, just west of New Orleans, as New Orleanians have literally and permanently moved to higher ground. Former residents are trickling back into New Orleans, Mobile, AL and Gulfport, MS to reclaim and repair their homes. The long-term problem, Ken Wright says, is that along the Gulf, “So much is still up in the air. Buyers really can’t move in until they know they will be able to get homeowners and flood insurance on the property.”

As the old saying has it, Kahalley says crisis equals opportunity. “We are starting with a blank canvas, with an opportunity to come back. We need to create a dramatic, consistent plan for the redevelopment and the future of our coastline.”

To view the full report please click on the following link
 
 
FEMA Declared Disaster Alert Kansas and Nebraska Severe Winter Storm
January 27th, 2006

On January 26th, FEMA issued a Presidential Disaster Declaration for areas affected by recent Severe Winter Storms in the States of Kansas and Nebraska.

No counties were declared eligible for Individual Assistance:  

The following counties were declared eligible for Public Assistance

Kansas - Cheyenne, Decatur, Edwards, Gove, Graham, Hodgeman, Ness, Norton, Pawnee, Phillips, Rawlins, Rooks, Rush, Sheridan, Sherman, Thomas, and Trego.

Nebraska - Antelope, Boone, Boyd, Custer, Dawson, Dundy, Frontier, Furnas, Garfield, Gosper, Greeley, Hayes, Holt, Kearney, Knox, Lincoln, Logan, Loup, Madison, McPherson, Nance, Perkins, Phelps, Pierce, Red Willow, Rock, Valley, Wayne, and Wheeler.

Please click on the links below to read the FEMA releases:

Kansas - FEMA Declared Disaster Alert Kansas Severe Winter Storm

Nebraska  - FEMA Declared Disaster Alert Nebraska Severe Winter Storm

For a complete list of your properties located in the declared disaster areas, please click on

 Safeguard PropertiesFEMA Declared Disaster List.

* Please note, you will need to be logged on to our web site for access via the above link.

For a listing of the zip codes located in the affected areas, please click on the following Excel files.

Kansas -  Zip Code List for FEMA Declared Disaster KS 012606.xls

Nebraska  -  Zip Code List for FEMA Declared Disaster NE 012606.xls

For a direct link to the FEMA web site, please click on www.fema.gov.

To view additional All Client Alerts, please click on Safeguard Properties All Client Alerts.

To review HUD's Declared Disaster Area Moratorium on Foreclosure, please click on HUD Moratorium on Foreclosure.

For information about VA's recommendations for forbearance, please see  IB 26-04-16.pdf.

For information about Freddie Mac's instructions, please see  FHLMC DISASTER.pdf.

To review Fannie Mae's Q&A regarding natural disaster relief, please click on Fannie Mae's Natural Disaster Relief Policies.

If you do not currently have access to our web site, you can request a sign-on login to our demo website by clicking on http://www.safeguard-properties.com/demo.

City of Columbus OH Actions to Combat Blight
January 24th, 2006

A recent article in the Columbus Dispatch discusses the latest developments in the city's attempts to combat blight.

City stepping up its fight to curb blight

Monday, January 23, 2006

Under a crush of complaints about shabby housing, junk cars and tall weeds, Columbus City Council is planning to add money for up to three new code-enforcement officers to the 2006 budget.

While Columbus continues to grow and age, the city has lost 24 code enforcers since 2001, going from 99 to 75, according to a report prepared for City Council. That loss includes nine full-time code-enforcement officers who were not replaced when they quit or retired, and 15 seasonal employees who cut tall grass and boarded up vacant houses.

Residents have noticed. City Councilman Kevin Boyce said they consistently asked for more-aggressive code enforcement while he was on the campaign trail last year.

"It demonstrates we’ve got to be addressing the need out there," Boyce said.

Karen Cassidy, president of the Hungarian Village Society, said her South Side neighborhood is trying to turn itself around. But that’s hard to do when crime and rotting houses go hand in hand.

"Drug dealers and criminals are living in the same properties with code violations," she said.

Cassidy said she likes the code officer assigned to her area. He works hard.

"But there’s not enough of him to go around," Cassidy said.

Boyce said more enforcement officers are a start. They could cost the city between $175,000 and $200,000 a year total. But with limited resources, city officials must think creatively to boost code enforcement.

To that end, the city has talked with the nonprofit Community Crime Patrol about a pilot program in Franklinton. Trained patrol officers could assist city code officials by making sure property owners are fixing problems.

In general, code enforcement in Columbus is driven by complaints.

"It’s all we can do," said city code-enforcement supervisor Jeff Pharion.

On the city’s Northeast Side, Pharion and the two code officers he supervises are busy. They cover a huge area from south of Morse Road, north to I-270 and across northeast Columbus to the growing areas around New Albany.

The area is filled with houses and apartments built in the 1960s and 1970s.

Pharion sees a lot of junk cars. At one house on Glendon Road last week, he checked out an old red Dodge with expired tags and three flat tires. He also noticed mildewed, waterdamaged soffits and a dangling gutter at the house.

At a house on Tamarack Boulevard, he cited two apparently inoperable vans, both with expired tags. One had two flat tires and straddled the sidewalk.

 Asked if he wants more inspectors, code-enforcement supervisor Dana Rose said, "If we had five more, that would be good."

According to a recent report that a legislative aide prepared for the Columbus City Council, the number of full-time code-enforcement officers dropped from 68 in 2001 to 59 last year.

And while Columbus Mayor Michael B. Coleman touts the success of his Neighborhood Pride program, which includes added code enforcement, the December report said the Pride sweeps don’t leave lasting improvements.

In the program, city crews spend a week in one neighborhood cleaning trash from alleys, cutting grass in parks, painting fire hydrants, repairing street lights and inspecting home exteriors for code violations.

"This ‘systematic code enforcement’ approach has worked in some areas, but has only been effective for a short amount of time,’ " the report said.

But Coleman called his Pride program "very successful." Since the program began six years ago, 5,300 properties have been brought into compliance and 400 junk cars have been removed, he said.

The city doesn’t have the money for a constant, systematic approach, Coleman said.

Coleman’s spokesman, Mike Brown, said the city has contracted with neighborhood groups to cut grass as the seasonal employees had done.

As for the three new codeenforcement officers, Coleman said, "I will gladly and willingly embrace them."

Boyce agreed that the program has been a success.

"The folks I’ve talked with want more of it," he said.

Neighborhood Pride went through Hungarian Village in 2003, Cassidy said.

She liked it.

"It’s what they should be doing all the time," she said.

Chris Gawronski, president of the Clintonville Area Commission, also wants to see more code-enforcement officers. In Clintonville, residents complain about deteriorating rental properties and trash in alleys.

Cassidy said the city needs to shorten the time to board up and sell vacant homes.

The city is putting together a new policy to speedily board up and sell problem vacant properties when owners can’t be found.

"We’re going to take it immediately to court," said City Attorney Richard C. Pfeiffer Jr., who is working on the policy.

Some communities have come up with other ways to enforce building codes.

A small staff also hampers Nashville, Tenn., which has only 17 property-standards inspectors and supervisors for Nashville and Davidson County, an area with an estimated population of 572,475.

In Nashville, 35 neighborhood groups are part of that city’s NOTICE — Neighborhoods Organized to Initiate Code Enforcement — program. The city trains and deputizes community leaders to cite property owners for tall grass, junk cars, yard debris, graffiti and unsanitary conditions, said Linda Lichtenberger, a supervisor for the program.

To view the online article please click on the following link

Columbus Dispatch Article City of Columbus OH Actions to Combat Blight

HUD Mortgagee's Request for Extensions of Time Form Update
January 24th, 2006

HUD has released an updated Mortgagee's Request for Extensions of Time Form, effective February 1, 2006.

Included in the new document are;

Type of Extension requests

1. Extension of time to initiate foreclosure. 203.355

1a. Unable to initiate foreclosure within 90 days after release date from State law or bankruptcy.

1b. Unable to initiate foreclosure within 90 days of loss mitigation failure.

1c. Unable to initiate foreclosure prior to first legal due date, due to failure of special forbearance plan.

2. Extension of time to initiate foreclosure on HECM mortgages. 206.125

2a. Unable to initiate foreclosure within 6 months of due and payable notice.

2b. Unable to initiate foreclosure within 6 months from mortgagor's death.

7. Unable to submit recorded partial subordinate mortgage within 6 months of execution. 203.371

**Please note that previous option "Unable to assign mortgage within 30 days of assignment approval, 203.350" is no longer an option.

HUD Decision on Extension request

1. g. Your request did not include sufficient information /documentation to support the request.

To view the updated document please click on the following link:

HUD Mortgagee's Request for Extensions of Time Form Update

 

VA Circular 26-05-09 Continued Forbearance on Loans Affected by Hurricanes Katrina and Rita - Update
January 24th, 2006

The VA has issued the following changes to VA Circular 26-05-09.

Veterans Benefits Administration                                                                  Circular 26 05-09

Department of Veterans Affairs                                                                                Change 1

Washington, D. C.  20420                                                                             January 19, 2006

 

CONTINUED FORBEARANCE ON LOANS

AFFECTED BY HURRICANES KATRINA AND RITA

 

      1.  PURPOSE.  This circular requests continued forbearance for VA home loan borrowers affected by the enormity of Hurricanes Katrina and Rita.  This change clarifies that VA will consider all appropriate forbearance to be VA-requested for purposes of determining whether or not VA will specify an amount for credit in connection with a termination sale, thereby giving the holder an option to convey property to VA.

 

2.      Effective immediately, Circular 26-05-09 is changed as follows:

 

      Page 2:  After existing paragraph 7 add

 

      “8.  DETERMINATION OF SPECIFIED ADVICE.  If a loan affected by these disasters is eventually terminated, VA will calculate the net value and total indebtedness to determine whether or not an amount should be specified in connection with the liquidation sale.  Should the initial calculation disclose that the un-guaranteed portion of the loan exceeds the net value of the property, then VA will recalculate the eligible indebtedness only to the time of the applicable disaster.  If the resulting indebtedness, less VA’s maximum guaranty, is less than the net value, VA will specify an amount for credit to the indebtedness and thereby give the holder the option of conveying the property to VA.  In such a case the claim payable will not be restricted to the date of disaster, but will be subject only to VA’s maximum guaranty.  This procedure will be followed on all loans affected by the disasters, as VA has requested that holders extend appropriate forbearance on all such loans.  It will also apply to cases described in paragraph 3, involving delay due to difficulty in contacting borrowers to determine appropriate courses of action.

 

9.  ADVANCE AND MODIFICATION REMINDERS.  VA regulation 4313 (title 38, Code of Federal Regulations (CFR), section 36.4313) provides authority for a holder to advance funds for maintenance or repair of a security property.  Also, 38 CFR 36.4314 gives authority for a holder to extend or modify a loan, or to recast terms to include an existing loan and an additional proposed loan for repairs.  While the authority is limited somewhat, the regulation indicates that prior approval from VA may be sought to modify a loan in a manner other than that specifically stated in the regulations.  Holders are encouraged to discuss any possible combinations of advances, repair loans, and/or modifications with the VA Regional Loan Center of jurisdiction.”

 

Page 2, paragraphs 8 and 9:  Redesignate as paragraphs “10 and 11”.

 

                                By Direction of the Under Secretary for Benefits

 

 

 

                                                                        Keith Pedigo, Director

                                                                        Loan Guaranty Service

 

FEMA Declared Disaster Alert South Carolina Severe Ice Storm
January 23rd, 2006

On January 21st, FEMA issued a Presidential Disaster Declaration for areas affected by recent Severe Ice Storms in the State of South Carolina.

No counties were declared eligible for Individual Assistance:  

The following counties were declared eligible for Public Assistance. Anderson, Cherokee, Greenville, Laurens, Oconee, Pickens, and Spartanburg

Please click on the link below to read the FEMA release:

FEMA Declared Disaster Alert South Carolina Severe Ice Storm

For a complete list of your properties located in the declared disaster areas, please click on

 Safeguard PropertiesFEMA Declared Disaster List.

* Please note, you will need to be logged on to our web site for access via the above link.

For a listing of the zip codes located in the affected area, please click on the following Excel file.

 Zip Code List for FEMA Declared Disaster SC 012106.xls

For a direct link to the FEMA web site, please click on www.fema.gov.

To view additional All Client Alerts, please click on Safeguard Properties All Client Alerts.

To review HUD's Declared Disaster Area Moratorium on Foreclosure, please click on HUD Moratorium on Foreclosure.

For information about VA's recommendations for forbearance, please see  IB 26-04-16.pdf.

For information about Freddie Mac's instructions, please see  FHLMC DISASTER.pdf.

To review Fannie Mae's Q&A regarding natural disaster relief, please click on Fannie Mae's Natural Disaster Relief Policies.

If you do not currently have access to our web site, you can request a sign-on login to our demo website by clicking on http://www.safeguard-properties.com/demo.

Cuyahoga County OH Foreclosure Backlog
January 20th, 2006

A recent report in the Cleveland Plain Dealer discusses the delays in foreclosure cases in Cuyahoga County.

Cuyahoga conceals foreclosure backlog

Complaint draws high court's attention
Monday, January 16, 2006
 
A North Collinwood woman's complaint to the Ohio Supreme Court may prompt Cuyahoga County to quit hiding thousands of drawn-out foreclosure cases from the glare of critics.

Foreclosures vanish from judges' case lists while they are in the hands of magistrates and don't return until the magistrates send them to the judges for final rulings. The practice, said to have started during the Depression, conceals the protracted handling of cases, the numbers of which have surged in recent years.

As of last week, almost 40 percent of Cuyahoga County's 12,755 backlogged foreclosures had dragged out beyond the Ohio Supreme Court's 12-month standard. But reports filed with the high court show only the cases at the judges' fingertips. A report for 2004, the most recent year available, counts only 12 Cuyahoga County cases more than 12 months old.

The Supreme Court guidelines are not mandatory, but justices will send workers to Cuyahoga County to help straighten out the court's reporting.

Shelley Freed Smith of Lakefront Walk complained about the discrepancies in Cuyahoga County's reporting in a letter sent this month to Ohio Chief Justice Thomas Moyer. The empty house next to Smith's home has been in foreclosure for eight years, blemishing a peaceful waterfront enclave near East 156th Street where Smith and her husband, Dave, raise two small children.

The end to Smith's crusade came into view in December when the court referred the property for sheriff's sale. But Smith will not let the matter die.

She wants all foreclosure cases, no matter how old, to show up on the dockets of elected judges.

"It's their job," she said. "There are so many homeowners in Cuyahoga County who are affected by this."

Smith sent copies of her Supreme Court complaint to Cuyahoga Common Pleas judges, sparking a lively discussion last week at their monthly meeting.

Court officials said after the meeting that they might put all foreclosures on judges' dockets or report them separately to the Supreme Court.

Judge Shirley Strickland Saffold, who has the Lakefront Walk case, said she did not know its duration until receiving Smith's complaint.

Saffold said the case suffered from a number of problems. It was temporarily withdrawn at one point and hit other roadblocks, including incomplete title work and a mandatory halt while the owner went through bankruptcy.

New Court Administrator Thomas Pokorny, a former judge, said the case was passed among three magistrates and got lost in the shuffle. He apologized for the eight-year delay, which he called unusually long.

"My view of it is we have reliable, hard-working staff," Pokorny said. "They have been overwhelmed."

Judge Nancy Margaret Russo agrees that the magistrates are swamped, but she said she and the other judges have been lax supervisors.

"I think they got used to doing things how they wanted to do them," Russo said. "They had no accountability, no one overseeing them. I think we failed as a court. We should have micromanaged it."

Chief Magistrate Stephen Bucha III blames the backlog not on anything the magistrates have done but on the overwhelming number of foreclosures filed in the county.

Under pressure from local officials to speed action on vacant homes, Common Pleas Court recently added a ninth magistrate and plans to hire three or four more. An increase in foreclosure fees will also add 19 workers to help with foreclosures as they pass through the offices of the sheriff and the clerk of courts. The bill will be more than $1.1 million a year.

The magistrates work only on foreclosures. Last year, the county saw 11,076 new cases.

By comparison, Hamilton County's lone magistrate, Richard Bernat, takes in 4,800 to 4,900 foreclosures annually and closes 75 percent of them within the year, said his law clerk, Michael Lubes. He also handles matters such as criminal arraignments, extraditions, protection orders, lease disputes and civil trials.

Bernat does away with steps that critics say Cuyahoga County wastes time on. For example, though Cuyahoga County property owners rarely fight foreclosures, magistrates schedule hearings and give property owners one last chance. Bernat does not bother.

Saffold and Russo called for changes in how the Cuyahoga County court manages foreclosures. They propose designating one or two judges to work only on those cases.

Pokorny said the court will consider recommendations, but he defended the magistrates' fastidiousness. He said it ensures that their rulings will hold up if challenged.

"I'll admit we are very finicky in Cuyahoga County about it," he said. "It's a serious matter."

To view the online article please click on the following link.

Cuyahoga County OH Foreclosure Backlog

City of Dayton News Release of "The Bank Project"
January 18th, 2006

The City of Dayton OH, recently issued a news release titled "The Bank Project" relating to vacant properties.

"The Bank Project"

The City of Dayton’s Division of Housing Inspection has been working on and implementing an innovative idea of developing positive lines of communications with the Default Mortgage Industry, in the interest of saving the city the financial costs and burden of boarding, securing and property clean-ups on Vacant and Open/Vacant Foreclosure and REO (bank real estate owned) properties. 

Conservation Specialist John Carter has not only titled this idea “The Bank Project”, but has also been very instrumental in learning, sharing and training his division on the following:

·      The basics of foreclosures
·      What is involved with servicing and owning a mortgage
·     
Mortgages are bought, sold, traded, and bundled in Pooling Agreements and Trusts, and other investment vehicles (including non-performing)

·      Field Service and Property Preservation companies that work with Mortgage Servicers on properties in foreclosure and REO (real estate owned by bank)

·      Who to talk to at a company that is holding or servicing a mortgage, and who at the Field Service and Property Preservation companies contracted by the mortgage servicers

With this knowledge, and after attending the 2005 USFN New Orleans Conference (United States Foreclosure Network / America’s Mortgage Banking Attorneys), where he was on a Code Enforcement Panel for Safeguard Properties , John Carter has acquired and built positive working relationships with:

·      100+ Bank/Servicer/Mortgage company contacts
·      12+ Property Preservation and Field Servicer company contacts
·      Real estate companies that manage and market foreclosure and REO’s
·      Contacts at HUD, VA, FANNIE MAE, FANNIE MAC, FHA, etc.

Over the past six months “The Bank Project” has had over a hundred properties secured and maintained by the Default Industry instead of the City of Dayton.  Most of the contacting is done by email, sometimes phone calls if clarification is needed, and all requests are followed up with emails of the work ordered to be done.  A Spreadsheet listing the properties and pertinent information including associated/possible costs/savings listed, and over 900 archived email communications with the Default Industry on those serviced properties. 

This past year John Carter has forwarded all press releases involving the City of Dayton’s Division of Housing Inspection and other important information by mass emails to the 120+ Bank Project contacts.  Of those contacts, companies like Safeguard Properties , Fidelity National Field Services, and First American have forwarded that information to over 10,000 of their clients in the default mortgage industry, and even posted the information on their company websites.  Safeguard Properties alone has four “All Client Alerts” posted on their website referencing the City of Dayton’s Division of Housing Inspection.

Several banks/servicers/mortgage companies have inquired about possibly donating properties they no longer have an interest in.  They have been supplied names and phone numbers of non-profits like St. Mary’s Development, Old North Dayton, East End, and Isis School, etc.  Recently Chase/Bank One finalized the paper work to donate a house to Corinthian Baptist Church which it plans to demolish to expand their parking and landscaping. 

The last couple months John Carter along with Denny Zimmer who is the point of contact person for the Boarding Requests, have been reviewing requests to check for foreclosures.  Of the requests reviewed so far approximately 40% or more have been secured by a bank instead of the Division of Housing Inspection sending them to the boarding contractor. 

This idea that John Carter calls “The Bank Project” has lots of positive feedback from the entire Default Mortgage Industry, and is potentially saving the City of Dayton a considerable amount in securing and maintaining Vacant, Vacant & Open Foreclosure, and REO Properties.

City of West St. Paul MN Snow Removal Ordinance
January 18th, 2006

Safeguard has seen a recent increase in the number of violations issued on properties failing to comply with the city's snow removal ordinances, specifically;

Section 810.05. Snow on Sidewalks
1) Requires property owners or occupants to remove snow and ice from adjacent public sidewalks within twelve hours after it falls or accumulates.

2) Gives the City the authority to remove the snow and ice at the expense of the owner, the cost to be levied as a special assessment against the property.

For additional information please click on the following link:

City of West St. Paul MN Snow Removal Ordinance

 

 

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