A recent article in Gazette.net discusses plans by the College Park MD Mayor and City Council to adopt an ordinance requiring "companies to notify the city's financial officer, in writing, no more than five days after filing a legal request to foreclose on a property."

Council might force lenders to notify city of foreclosures

Policy could reduce code violations

College Park could soon require lenders to notify the city when they intend to foreclose on residential properties, if a proposed ordinance is approved. The ordinance could help better maintain vacant properties but some officials worry whether the city will be able to enforce it.

The proposal was formally introduced by Councilman Patrick Wojahn (Dist. 4) at a City Council meeting Tuesday night and was previously discussed at the council's Sept. 1 work session.

The ordinance would require companies to notify the city's financial officer, in writing, no more than five days after filing a legal request to foreclose on a property. Companies would be fined $100 for each day that they fail to comply.

Wojahn believes the city would benefit from having the companies' names on file. It would allow the city to notify financial institutions of property codes violations at vacant properties due to lack of upkeep. The ordinance could also bring institutions in touch with potential homebuyers.

A report done earlier this year by the state Department of Housing and Community Development indicated there are about 50 to 75 foreclosed homes in College Park.

"We want people to be able to know who to contact if they want to buy a foreclosed property," he said.

Some city officials believe the ordinance is well intentioned but aren't sure whether the city can enforce it when the banks that own foreclosed homes aren't very experienced or interested in complying with a municipal government.

"I understand why we want to do this," said Mayor Stephen Brayman at the Sept. 1 work session. "But I don't know if we're going to be able to work it out if we're going to go up to a big, bad bank that frankly doesn't care about anybody."

Councilman Jack Perry (Dist. 2) called the ordinance "a waste of time" and said any disputes with banks would only distract city officials from other issues.

"I don't understand why we're going to get involved in this," Perry said. "I don't want an abandoned house next to me that I don't know who's taking care of it, but I think there are already sufficient laws [policing foreclosed or abandoned homes]."

The mayor and City Council plan to hold a public hearing regarding the issue on Sept. 22. The council will likely vote on the ordinance at its meeting later that night.

If the ordinance is approved, Wojahn said the city will have to work hard to notify banks of the policy. He acknowledged the institutions might ignore it initially but said the fines could send a clear message.

"It will be tricky," he said. "Hopefully, that will start to get their attention."