7:46 AM Thu, Jan 31, 2008 | Permalink
By John Kostrzewa  Email this author | Email this entry |
House Speaker Tempore Charlene M. Lima, D-Cranston, has submitted legislation to require that any foreclosed property in Rhode island be maintained in a condition that will not adversely affect the neighborhood in which it’s located.
“Foreclosed property that is neglected subjects neighborhoods and municipalities to drug crimes, prostitution, vandalism, vagrants who live in the foreclosed property and a host of other social ills,” she said, in a statement.
As the foreclosed property falls deeper into disrepair, the values of surrounding homes and business also deteriorate at an alarming rate, further adding to the “foreclosure blight” and destruction of whole neighborhoods, she said.
Under the legislation, any individual, financial institution or business that purchases property at a foreclosure must file with the municipality in which the foreclosed property is located a bond worth 25 percent of the price paid for the foreclosed property. The Foreclosed Property Upkeep Bond must be filed with the city or town clerk’s office at the time the foreclosure deed is recorded. No city or town clerk’s office will be authorized to record any foreclosure deed that does not have an upkeep bond attached.
Alos, the legislation requires that:
Any foreclosed property deemed unsafe or in violation of any municipal ordinance that is not corrected within 20 days would have its foreclosure bond forfeited to the municipality and the proceeds would be used to correct the deficiencies.
Any unused portion of the foreclosure bond would be kept by the municipality to ensure the future upkeep of the foreclosed property.
nce the full value of the foreclosure bond is used in the upkeep of the property, the owner of the property must file another bond in the same amount within 10 days or have the property forfeited to the municipality under the same procedures governing tax sales.
New comments
New photos
Authors
New posts
Projo blogs
Archives
What a load of manure.
Why should any buyer of real estate have to pay for a bond simply because the previous owner could not keep up with his mortgage payments?
There are already laws in place so that if ANY house has deficiencies, the cities can take action to ensure that they are corrected. The problem has always been that those laws are not upheld. If you want to see a couple of glaring examples, just take a look at that produce terminal in the news that the city of Providence wound up owning, and that the new owners purchased and just sat on for years letting it rot. Take another look at the train station in Pawtucket that has been deteriorating for decades.
In contrast, look at the house last year that was sold at auction because of a lousy $1000-ish water and sewer bill. The poor old woman lost her house, which was by no means decrepit, to a strong-armed enforcement of the law to the letter.
It's about time we got rid of the corruption and begin to enforce the laws already on the books, uniformly and fairly.
Report Abuse