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Are Banks Breaking the Law in Garden Grove?

By
Real Estate Agent with Short Sales, Foreclosures, Rentals, Income Real Estate

Garden Grove Vacant Property Ordinances: Are They Being Followed or are Banks Breaking the Law?

Upon multiple complaints on the condition and safety of vacant homes in Garden Grove in 2008 by city residents led to the current Garden Grove Vacant Property Ordinances.

The picture below was taken from the PWR (Pacific West Realtors) website and demonstrates some of the requirements for a vacant home in Garden Grove; a $150 fee and a 10-day period in which one needs to register the home.

Even though this ordinance is in place it still seems that Banks will try anyway around this if possible. Drive down a few streets in Garden Grove and you will see a vacant home that doesn't look to be in compliance with the law. It's very unlikely that the banks will act on this fairly new law until they are directly ordered too. I don't know how strict the city is on these vacant homes but it'd be interesting to know how many banks are actually registering the vacant homes compared to the ones that are out there.

The reason for enacting such an ordinance is said to be for the protection of the community from becoming blighted through the lack of adequate maintenance and security of vacated properties as well as helping to eliminate the danger to persons and property created by vancant properties which are not properly secured and maintained.

As well as the fee and 10-day period, there are a few other requirements that the beneficiary must comply with such as maintenance (keeping property free of weeds, dry brush, dead vegetation, trash, junk, accumulation of newspapers, circulars, flyers, etc.) and security (proper closure and locking of windows, doors, gates, and any other opening of such size that it may allow a child or any other person to access the interior of the property and or structures(s).).

 

 

Posted by

 Ron Holborn :: Cell Phone - (714) 469-8198 :: E-mail - RemaxRon88@hotmail.com




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Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warrantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

 

Shannon Jones
The Shannon Jones Team - Long Beach, CA
Long Beach CA Real Estate

Ron, I'm wondering how many banks are even aware of the regulation. With assets all over the country, it must be a challenge for them to keep on top of specific ordinances, fees, and requirements for so many municipalities.

Jul 19, 2011 02:37 PM
Ron Holborn
Short Sales, Foreclosures, Rentals, Income Real Estate - Anaheim, CA
Commercial & SFR, Anaheim CA, Real Estate & Short

That's a good point Shannon. I'm sure there are many out there that don't know about it!

Jul 19, 2011 02:39 PM
Bruce Parker
Best Realty - Highland Park, NJ
You Deserve The Best

banks need to change the way they handle things. They just think that local real estate agents are pond scum. they will need us

Jul 19, 2011 02:55 PM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

Fannie Mae nows asks the listing agent if the city has any laws such as this at the beginning of the assignment and will pay the fee and keep the property up to requirments. Murrieta and Temecula California both have these codes.

Jul 20, 2011 01:36 PM
Anonymous
Kevin Spainhour

It is very common in California to see cities wtih vacant property registration requirements.  Having  owned an REO Rehab contractor when those ordinances starting showing up, I can tell you it is very common and a very good revenue stream for the Cities as the registration triggers inspections by code enforcement.  Inspections by code enforcement equalls fines and permit fees to the City.  There are pros and cons to the rules but one thing that rings true is if the Cities enforce the rules then the REO's look a whole lot better than the houses that surround them in many areas.

Jul 20, 2011 04:47 PM
#5
Ron Holborn
Short Sales, Foreclosures, Rentals, Income Real Estate - Anaheim, CA
Commercial & SFR, Anaheim CA, Real Estate & Short

Thanks Cameron and Kevin I know there are  42 REO listings in Garden Grove lets see 150 x 42   =6300

to the city.

Jul 21, 2011 11:13 AM