Banks will now have to register San Diego city homes in the foreclosure process into a tracking database starting early next year.
The new requirement, approved by the City Council on Tuesday on a 5-3 vote, is meant to help city code enforcement officers track and address potential problem properties, which could trigger crime, safety issues and drops in property values. Council members Kevin Faulconer, Carl DeMaio and Lorie Zapf opposed the measure.
Under the new ordinance, lenders will have to provide accurate information of the responsible contacts of such homes upon the filing of a notice of default, which is the first formal step in the foreclosure process. Similar ordinances exist in 70-plus other California cities, based on council documents.
“We could get another wave of foreclosures and defaults,” said Councilman David Alvarez, who was the key council supporter of this ordinance. “This will prepare us for the next wave.”
Center on Policy Initiatives and Alliance of Californians for Community Empowerment were the main drivers of the ordinance.
Banks will have to pay a $76 fee for each property within 10 days of the notice of default filing. If lenders fail to do this, they will face a fine of $100 a day, capped at $5,000 a year.
San Diego County has suffered through more than 65,000 foreclosures since 2007, mainly the result of reckless lending practices…
Read the rest of this article by U~T San Diego here: “Foreclosure registry measure passes in San Diego”.