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September 21, 2014

Troubled-Home Ordinances on the Rise

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Troubled-Home Ordinances on the Rise

In an effort to prevent blight, municipalities increasingly are imposing ordinances that require mortgage servicers to cough up fees, post bond for repairs, and register homes headed toward foreclosure.

The number of laws mandating registration of vacant or foreclosed property has surged more than 50 percent over the last six months to 980, with California and Florida each approving more than 100 such ordinances. The trend could burden banks, investors and the housing government-sponsored enterprises with millions and possibly even billions in extra costs.

Source: "Mortgage Holders Slammed With Raft of Costly Troubled-Home Ordinances," American Banker (March 6, 2012)

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