Foreclosures and Code Violations - What should local government do?

Frequently, when properties are foreclosed, there is a time when the property is left unattended and code violations result.  One of the more prevalent problems involves the grass not being mowed.  Green pools full of algae sometimes present an odor problem for the neighborhood.  Recently I showed a foreclosed house that had a green pool and was located in a short term rental neighborhood.  The unfortunate vacationers from the UK who rented the next house, downwind from the pool, had an unpleasant time trying to enjoy a relaxing dip in their pool after a day at Disney or other local parks.

In Kissimmee FL, near Disney and the county seat of Osceola County, city commissioners are considering an ordinance that would levy a $200 fee to "register a home" that is in foreclosure.  Although the fee would be charged eventually to banks or mortgage companies, not Realtors, the local Realtor association (Osceola County Association of Realtors, OSCAR) expressed concern that the fee would somehow be passed down to the real estate community.

The city cited difficulty enforcing code violations because owners frequently abandon their properties and it is difficult to determine who is responsible for the property.  It is during this time, often months, that code violations occur.  How often are we asked to write an offer with "Owner of Record" as the seller because neither the listing agent nor the asset manager is really sure who does indeed own the property?

Code violations certainly do make a neighborhood less attractive to a prospective buyer and consequently affect perception of value of the houses for sale in the neighborhood.  The proposal being considered in Kissimmee seems unwieldy and would unfairly burden the unfortunate homeowner who is in foreclosure but still maintains his property.  In mid-November the city commission will again consider this proposed ordinance.

How does your community handle code violations due to foreclosures and the resulting liens that are placed upon a property when the city needs to mow grass or resolve trash, smell or other issues?